This month, eMarketer shared its forecast for U.S. Ad Spending – a look at what’s to come in the ever-changing world of advertising.
The results ushered in a new regime in the advertising industry: By 2019, mobile will account for 72% of U.S. Digital Ad Spend.
Soak that in.
If you’re the visual type, here’s a chart:
For context, this is a significant shift from the landscape in 2015. Desktop and mobile currently net nearly equal spend. By 2019, the gap between desktop and mobile spending will widen by more than 40%. Desktop spending (as a percentage of overall digital spend) will drop from 51.0% to 30.3% while mobile rises from 49% to 69.7%.
With consumers spending more than two hours a day on their phones, it’s no surprise mobile ad spend will eclipse digital.
“As mobile moves to become the dominant ad channel,” says the report, “advertisers are devoting more of their spending toward video, rich media and social network placements…”
Along with this huge shift in desktop and display, eMarketer’s report shared some a few other revelations in the media landscape:
1 – TV is still the largest advertising format in the US, but digital will take over in 2018.
The Mad Men better pack their bags. While TV ad dollars will rise more than $10 billion by 2019, digital ad investments will overtake TV by $4 billion in just three years driven in large part by mobile ad spending.
In a further blow to traditional media, mobile spending will also surpass print spending in 2016.
2 – Video will account for 13.3% of display expenditure this year, the second-largest share of any display format.
This is propelled by mobile video investments, which will double by 2019. “Mobile search’s share of the total mobile ad market will shrink over the next few years as advertisers spend more on mobile video and formats in the ‘other’ category,” says the report.
3 – App Install Ads currently make up 8.7% of mobile ad spend and will grow to 3 billion this year.
While some initially blasted app install ads as a trend, eMarketer’s forecast shows a strong future. Mobile display investments, which include video, banners, mobile install ads, and social network ads will make up 51.1% of the total mobile ad market.
Display has already overtaken spend coming from search.
“2015 is also a landmark year,” the report says, “marking the first time that display ad investments will outstrip search ad spending.”
4 – This year, app spending will outpace mobile web browser ad dollars nearly 3-to-1, increasing 42.6% to nearly $30 billion.
Thanks to the very healthy future of mobile app advertising, 2015 is the first time ever that eMarketer broke “mobile app” and “mobile web” spending into two different categories for its report.
Mobile web is also expected to grow quickly– a robust 36.7% in 2016 – but app spending is on a faster growth trajectory.
Ad Spend Means Ad Innovation
While it’s easy to get lost in the numbers, the human face of this report is the brands, developers, studios and partners who work in the mobile space.
At Vungle, we’re incredibly fortunate to be part of the growth and innovation happening in the industry now. And as more advertising spend comes to mobile, it’s only going to encourage more inspiration, new technology and smarter ways of doing things. That’s a positive change for the entire industry.
We’re looking forward to the ride.