2014 could be a banner year for total media ad expenditures in the U.S.
According to eMarketer analysis, “on the strength of gains in mobile and TV advertising, total ad investments will jump 5.3 percent to reach $180.12 billion, achieving 5 percent growth for the first time since 2004, when ad spending increased 6.7 percent.”
“Mobile will lead this year’s rise in total media ad spending in the US, and advertisers will spend 83 percent more on tablets and smartphones than they did in 2013—an increase of $8.04 billion,” eMarketer reports.
That means that by the end of 2014, mobile will represent nearly 10 percent of all media ad spending. That also means it will put the hurt on newspapers, magazines, and radio for the first time. It would place mobile in the third biggest spend spot, trailing only TV and desktops/laptops.
“Though investments in TV advertising will rise just 3.3 percent, advertisers will spend $2.19 billion more on the medium than they did in 2013, making it the second-leading category in terms of year-over-year dollar growth,” eMarketer observes.
Other data points:
1. The surge in mobile advertising is chiefly attributable to the fact that consumers are spending more and more time with their tablets and smartphones. U.S. adults will spend an average of 2 hours 51 minutes per day with mobile devices this year. In 2013, daily time spent on mobile devices and on desktops and laptops was equal, totaling 2 hours 19 minutes.
2. TV remains by far the largest beneficiary of adults’ media time, at 4 hours 28 minutes in 2014, hence its persistent lead as the top category for advertising spending.
3. Strong, steady growth in mobile advertising will push digital ads to represent nearly 30 percent of all US ad spending this year. Advertisers will invest more than $50 billion in digital channels in 2014 for the first time, an increase of 17.7 percent over 2013.
“The accelerated rise in ad spending is being influenced in part by growing revenues from leading internet media companies, particularly those that are capitalizing on mobile revenues,” says the report.
eMarketer projects advertising revenues for a handful of the top US digital ad-selling companies, which collectively will represent 18.2 percent of total media ad spending this year—led by Google and Facebook.
There is more info — along with data, disclaimers, and methodology facts — in the post. Check it out here.