BI Intelligence estimates that mobile advertising revenues will climb to $50 billion this year, and by 2018, $82.7 billion. This huge growth in advertiser investment is a logical step as smartphones continue their march to global domination. (There are now 1.75 billion smartphone users globally – more than the entire population of China, if you were wondering.)
It’s Mobile’s World. Advertising is Just Living in it.
These numbers don’t come as a shock. Despite what bloggers decide to proclaim this year, or the next, mobile’s time isn’t finite. And, advertising is a vital and viable part of its ecosystem.
With adoption rates of mobile still fast and furious (and beating almost every media that came before), advertisers are eager to play in the consumer’s space. But to do so requires a shift in thinking for advertisers, just as it has required a shift in the user’s mindset.
Let’s look at the other findings from Business Insider – they reflect just how much advertising aligns with the greater changes mobile brings.
Growth Spurts: Tablets and Smartphones are on the Rise
Mobile growth far outpaces the rest of the ads market, according to the report, with a predicted five-year annual growth rate of 49.7% – compared to 15% for desktop video and -5.4% for desktop display.
The more people with smartphones, the more advertisers will want to place their ads where the users will see them. But, this is also indicative of the highly engaging experiences mobile advertising offers. Mobile ads can be baked into gameplay or tied to the social experience in a way that makes them less intrusive and more of an incentive for user action.
As Mobile Rises, Down Goes the Traditional Media Empire
Well, it’s definitely not the Year of the Newspaper. Newspaper advertising revenues will decrease by 4.4%, says the report.
TV, while still a huge repository for advertiser dollars, isn’t staying on pace with mobile’s growth. In fact, online and mobile video ads are starting to outpace TV revenue. Smartphones will account for nearly one-half of all online video ad plays by the end of 2016.
The next year may see more course-correction. Based on data showing consumer time spent on each network, advertisers may actually be over-spending on TV and under-spending on mobile (as underscored in Mary Meeker’s always-awesome deck.)
Mobile is Stealing from Desktop Display’s Plate
Online display revenues, including banner, rich media and sponsorship ads, will fall to $5.1 billion in 2018. Mobile is undoubtedly siphoning some of the online eyeballs, with 25% of total web time now spent on smartphones or tablets.
The piece of the pie owned by video, though, is getting larger. A report from Forrester on online display advertising says video will claim about half of all online display advertising revenues.
Call to Arms: An Opportunity to Do Better
Mobile is a technology shift, sure, but it’s also the beginning of a revolution –one that impacts how we behave, how we interact, how we connect, and, of course, how we purchase.
As more advertisers shift toward the mobile space, it’s the duty of those in the mobile ecosystem – advertisers, developers, DSPs, and companies like Vungle – to see these numbers as an opportunity. To always strive for better. To deliver advertising that’s immersive and useful and relevant.
Working together and demanding better will move the entire industry forward. Then, we won’t just be talking about the Year of Mobile or even the Year of Mobile Ads. We’ll be talking about the dawn of the mobile era.
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