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
Pandora Expects To Exceed Q4 2016 Guidance, Citing Subscription Momentum and RPM Growth
SiriusXM Launches "Hits 1 in Hollywood"
In Brief - January 13, 2017
January 12, 2017
Beasley Names Debbie Mazella Program Director Of Magic 98.3/New Jersey
The Dave & Mahoney Morning Show Returns To KXTE (X107.5)/Las Vegas
January 11, 2017
Cumulus Promotes Matt Raback To VP/Market Manager For York-Lancaster-Reading, PA
Crystal Castorena Named GM For Impact Radio Group
Justin Luvv Named Afternoon On-Air Personality/Imaging Director For WRWM/Indianapolis
January 10, 2017
Ron Parker Named New Afternoon Host At WLS-FM/Chicago
KLOS/Los Angeles Kicks Off 2017 With New Programming Additions
Mark Kassof & Co. Launches Mobile Music Test
January 9, 2017
Steve Butler Renews With CBS Radio As VP/News Programming
Beasley Media Group Promotes AJ Lurie To VP/Market Manager, Wilmington, Delaware
Cumulus Promotes Wallace To OM, Shickles To PD In Flint, MI
Beasley Names Brian Samborski Regional Director/National Sales
Trish Gazall Signs Multi-Year Renewal At KEZK/St. Louis
January 6, 2017
Nathan Fast To Host Mornings on KVIL/Dallas-Fort Worth
iHeartMedia Austin Extends Agreement with The Bama, Rob & Heather Show on KVET FM
Emmis Announces Third Quarter Earnings
SiriusXM Exceeds 2016 Subscriber Guidance; Issues 2017 Subscriber and Financial Guidance
January 5, 2017
iHeartMedia Orlando Expands Three Programming Roles
CBS Radio Philadelphia Relaunches WZMP-FM As "Today's 96.5"
Johnnie D Named Program Director At WGCI/Chicago
Beasley Launches New Mainstream AC B98.7 In Tampa
Music News
U2, Chili Peppers, The Weeknd & Chance the Rapper Headlining Bonnaroo
Quick Hits: Ed Sheeran, Ariana Grande, John Legend, Fifty Shades Darker, Trent Reznor
Quick Hits: Ed Sheeran, Prince
Quick Hits: Rocklahoma, Prince's Estate, Big Sean, Shaky Knees Music Festival, Spoon
U2 Announce Joshua Tree Anniversary Tour
Quick Hits: Panorama Festival, Green Day, Billboard 200, A Perfect Circle
Ed Sheeran Releases Two New Singles
Tool, Chance the Rapper & Phoenix Headlining Governors Ball
Beyoncé, Radiohead & Kendrick Lamar Headlining Coachella 2017
Quick Hits: BottleRock Napa Valley Festival, The Chainsmokers, Ed Sheeran
Pop Star George Michael Dead at 53
The Music World Mourns George Michael
Pearl Jam, ELO, Tupac & More Elected to Rock Hall of Fame
New Nine Inch Nails EP Arriving Next Week
Adele, Coldplay Win Big at BBC Music Awards
FMQB NOW

FMQB At Issue

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

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