Total US Ad Spending to See Largest Increase Since 2004
July 3, 2014
Untitled Document

Total media ad spending in the US this year will see its largest increase in a decade, according to new figures from eMarketer. On the strength of gains in mobile and TV advertising, total ad investments will jump 5.3% to reach $180.12 billion, achieving 5% growth for the first time since 2004, when ad spending increased 6.7%.

Mobile will lead this year’s rise in total media ad spending in the US, and advertisers will spend 83.0% more on tablets and smartphones than they did in 2013—an increase of $8.04 billion. By the end of this year, mobile will represent nearly 10% of all media ad spending, surpassing newspapers, magazines and radio for the first time to become the third-largest individual advertising venue, only trailing TV and desktops/laptops. Though investments in TV advertising will rise just 3.3%, advertisers will spend $2.19 billion more on the medium than they did in 2013, making it the second-leading category in terms of year-over-year dollar growth.

The surge in mobile advertising is chiefly attributable to the fact that consumers are spending more and more time with their tablets and smartphones. According to eMarketer’s latest estimates, US adults will spend an average of 2 hours 51 minutes per day with mobile devices this year. In 2013, daily time spent on mobile devices and on desktops and laptops was equal, totaling 2 hours 19 minutes, but this year, time with desktops and laptops will drop slightly to 2 hours 12 minutes, while mobile time will increase significantly. TV remains by far the largest beneficiary of adults’ media time, at 4 hours 28 minutes in 2014, hence its persistent lead as the top category for advertising spending.

Strong, steady growth in mobile advertising will push digital ads to represent nearly 30% of all US ad spending this year. Advertisers will invest more than $50 billion in digital channels in 2014 for the first time, an increase of 17.7% over 2013. Just over one-third of that will come from mobile, but by 2018, mobile will account for more than 70% of digital ad spending.

The accelerated rise in ad spending is being influenced in part by growing revenues from leading internet media companies, particularly those that are capitalizing on mobile revenues. eMarketer projects advertising revenues for a handful of the top US digital ad-selling companies, which collectively will represent 18.2% of total media ad spending this year—led by Google and Facebook. Google alone already accounts for more than 10% of all advertising spending in the US, and in 2016, together Google and Facebook will take a 15.0% share of the $200.00 billion total media advertising market. Mobile ads on Facebook will total 68.0% of its US ad revenues this year, up from 46.7% last year, eMarketer estimates, and while Google’s ad revenues in the US won’t flip to majority-mobile until 2016, they’re shifting quickly. This year, Google’s US mobile revenues will comprise only 36.8% of its overall ad revenues, but by 2016, the medium will account for 65.8%.

Breaking News
Report: Most See P1 Station Like A Friend
Greater Media Collects 200,000 Bottles of Water For South Carolina Flood Victims
October 8, 2015
Emmis Announces Second Quarter Earnings
WiLD 94.9 Names Julian On The Radio Afternoon Drive Host
Entercom Atlanta Promotes Michael Chase to Director of Marketing & Promotions At Star 94
KNEV/Reno Turns On Classic Hip Hop
Benztown Partners With Dash Radio
October 7, 2015
Ellen K To Launch A New Morning Show On KOST/Los Angeles
Pandora To Acquire Ticketfly
Slow Jams Launches New Throwback Edition
Steven Meyers Promoted To Director/Digital Operations At Greater Media
October 6, 2015
Bubba The Love Sponge Apologizes For Ratings Tampering
Cumulus Launches Classic Hip Hop 98.3 The Vibe
Jon Platt Named CEO At Warner/Chappell
CBS Radio Names Sam Rogers VP, National Sales & Corporate Partnerships
In Brief - October 6, 2015
October 5, 2015
Beasley Media Group Announces Actions Against Todd Clem AKA, ‘Bubba The Love Sponge’
iHeartMedia Presents "iHeartRadio Jingle Ball 2015 Concert Tour"
Steve Mills Named iHeartMedia’s Chief Information Officer
Puff Daddy Brings Bad Boy To Epic Records
Charlamagne Tha God Renews With iHeartMedia
In Brief - October 5, 2015
October 2, 2015
2015 NAB Marconi Radio Award Winners Announced
In Brief - October 2, 2015
October 1, 2015
Music News
Taylor Swift Talks Grammys, Life After 1989
Quick Hits: Bruno Mars, Kendrick Lamar, Green Day, Radiohead, Mariah Carey, Three 6 Mafia
Janet Jackson, N.W.A. and More Up For Rock Hall
Quick Hits: Rihanna, Ciara, Deadmau5
Selena Gomez Maps Out Revival Tour
Quick Hits: RIAA Gold & Platinum, Cage The Elephant, Kurt Cobain, American Music Awards / Jennifer Lopez
Quick Hits: Kendrick Lamar, Brian Fallon, Ten Commandos, The Cure, Lollapalooza South America, JoJo, Courtney Barnett
Fetty Wap Debuts Atop Billboard 200 Chart
Quick Hits: Miley Cyrus & Flaming Lips, Will Smith, Maynard James Keenan, Ben Folds
Deluxe Edition of Sam Smith's In The Lonely Hour Announced
Quick Hits: Selena Gomez, Miley Cyrus, Megadeth, Beastie Boys
Quick Hits: Fifth Harmony, Train's Pat Monahan, Seal, Roger Waters
Beyoncé, Jay Z & Prince Headlining Massive TIDAL X Charity Concert
Quick Hits: The Who, Ed Sheeran, Bleachers, American Music Awards, Katy Perry / Sting, Austin City Limits
Quick Hits: Nicki Minaj, Lady Gaga, Kendrick Lamar

Mark Adams
San Francisco

FMQB Member Login

Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!