Over the last few years, the rumours of declines within the print industry have been no secret. It has been said that the stresses put on publishers and radio have been immense. However, in 2012, the combined ad space for newspapers and magazines outweighed that of the internet. That being said, it would be ignorant to ignore the fact that we are living in an age where digital is everything.
This post uses data retrieved by Zenithoptimedia, a company that aims on improving the efficiency of marketing spend. This ROI agency is focusing on the US because it is the biggest market for overall ad spends.
Zenithoptimedia predicts that the year-end of 2013 will see digital ad spend being 22% in the United States, and mobile ads 3.7% of the total global spend. The global ad spend growth is projected to reach $503 billion. The figures are foreseeing that amounts going into digital ad spend are only going to increase.
The US has the single largest ad market. The digital ad spend in 2013 is 21.8% ($109.7 billion), growing from its 19% in 2012.
Though it is a growing trend, mobile still remains to be seen as a solid minority. US mobile ads make up 3.7% of all ad spend, equalling to $6.2 billion.
What is driving the most growth in advertising? This is easy to answer. It’s mobile. Mobile ad spend sees a growth by 81% this year in the USA, adding up to 8.4% of total ad spend across all borders. In comparison to this, the internet advertising market is growing by just 16% and sees to comprise 27.8% of total ad spend by the year 2015.
On a global basis, mobile ads have been worth $8.3billion in 2012. 9.5% of internet expenditure and with 1.7% of advertising across all media. Zenithopticmedia goes onto predicting the total rise calculating to $33.1 billion. This would be comprised of 25.2% internet expenditure and 6.0% all other expenditure combined.
The Rise of Mobile
The rapid growth of mobile ads should come as no surprise.. some are in the belief that due to the sales of tablets, it could possibly overrun the sales of desktop PC’s by the end of this year. Smartphones are undoubtedly becoming the primary manner in which people are accessing the net. Zenithoptimedia does not disclose who is leading the change in mobile ads, but in the past Google has taken first place.
With the rise of Millenial Medias’ JumpTap, Twitters’ MoPub, Facebook Ads and Instagrams’ plan to launch ads, mobile revenues are sure to pick up, dramatically.