latest data from BIA Kelsey suggests that Mobile is the fastest growing among all location-targeted media that BIA/Kelsey tracks. When panning back to mobile’s overall U.S. ad spend (local and non-local), it’s estimated at $33 billion in 2016, growing to $72 billion by 2020, a 17 percent compound annual growth rate. Zeroing in on the location-targeted portion of that overall mobile ad spend, it will grow from $12 billion in 2016 to $32 billion in 2021, a 21 percent CAGR. That translates to 38 percent of overall mobile ad revenues today, growing to 45 percent by 2020.
Drivers include mobile users’ commercial intent and advertisers’ evolution to align with that behavior. There are also premiums associated with location-targeted ads — a function of their performance and growing demand. And Madison Avenue is latching on to these realities..
In 2014, mobile spending increased 80 percent, and in 2015 by another 59 percent. By 2019, eMarketer predicts that mobile spend will account for just about 70 percent of total digital spend.Domestic digital advertising revenue surged to a record-breaking $59.6 billion for the 2015 calendar year, largely led by Mobile as which climbed to $20.7 billion,according to adage data a whopping 66% upswing from the previous year. But social media shared the spotlight, growing 55% to $10.9 billion, up from the previous year's $7 billion.
Meanwhile as mobile users keeps increasing at a breath taking pace, engagement across mobile devices have also increased.Today an average U.S. adults spend an average of 2 hours and 51 seconds fiddling with their phones every day. To put that in context, a 2015 study by Zenith Optimedia put our total media time at 490 minutes, or more than 8 hours a day—a majority of the time we’re conscious. The rest of that time is partly the reason that, despite mobile’s takeover of digital spend, mobile still accounts for only 17 percent of total ad spend. TV is still the major player when it comes to ad spend, though eMarketer predicts that, too, will change by 2019.
. Clearly mobile advertising powered by Mobile display, mobile search and mobile enterprise messaging is set to dominate the Mobile ecosystem.By 2019, mobile will represent more than a third of total media ad spending in the US. Google is the undisputed king of mobile and will remain so for the foreseeable future. Google will capture 32.0% of the mobile ad market—its closest rival Facebook capturing 22.1% this year |
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