The Rise of Digital and Mobile Ad Spending in the U.S.

The Rise of Digital and Mobile Ad Spending in the U.S.

When it comes to advertising spending in the United States, TV advertising is and has been the largest medium but many experts are predicting that by 2018, digital ad spending will exceed the spending on TV advertising.  According to estimates from eMarketer, digital ad spending will increase from about $50 billion to over $80 billion by 2018 and mobile ad spending is expected to triple and reach over $58 billion in expenditures by 2018. This information is important for marketers and advertisers to take into account because the ad spending trends reflect larger trends of the consumer market.  About two-thirds of the U.S. population will be using smartphones and other mobile devices by 2018 and many advertisers are already allocating more funds away from desktop formats to mobile advertising.  It is this shift to mobile use by the consumer market that is largely fueling the shift to digital and mobile ad spending.  The following are general statistics compiled by eMarketer regarding media ad spending. Spending on advertising in 2014 increased by just over 5% from 2013. Similar growth is expected for 2015. eMarketer expects TV ad spending to increase by only about 3% in 2014 and 2015. Ad spending for digital online and mobile formats increased by over 17% in 2014 and a 15% increase is expected for 2015. By 2018, spending on digital ad mediums will surpass TV ads and continue to gain more of the market share. Mobile is expected to fuel the growth of digital ad spending with annual growth in the double digits through 2018. These statistics for eMarketer’s ad spending forecast through 2018 indicate...