The recent trend towards increased spending on mobile, social media, and digital video will propel U.S. digital advertising revenue to nearly $82.7 billion by 2018, according to an updated BI Intelligence forecast. Mobile advertising alone is expected to make up $32.6 billion of the total spend.
This rapid growth in mobile advertising investment is a logical step for all industries, as smartphones continue their march to global domination. There are now 1.75 billion smartphone users around the world. To give that number some perspective, that meant that there are now more smartphone users than there are people living in China.
From the report, we can see that mobile growth far outpaces the rest of the ads market with a predicted five-year annual growth rate of 49.7%, compared to 15% for desktop video and -5.4% for desktop display. According to Business Intelligence, "The huge growth in mobile and social spending are the result of advertisers chasing eyeballs, as audiences migrate their media consumption to mobile devices and apps, with social apps as a leading time-spend bucket. " Now that over 25% of time spent on the web is spent on a mobile device, it will be critical for businesses to embrace mobile advertising for 2015 and the future.
The significant projected drop in desktop, newspaper, TV, and other traditional advertising mediums further shows the shift in technology that we have seen over the past years. As consumers continue to embrace mobile devices for their online shopping needs, businesses will need to embrace them as well. Mobile advertising is here to stay, and it's going to continue to grow with time.
Hoelzel, Mark. "Mobile Advertising Is Outstripping Growth In TV, Radio, And All Digital Ad Mediums, Many Times Over." Business Insider. Business Insider, Inc, 14 Sept. 2014. Web. 30 Apr. 2015.