One can read a great deal about the rise of mobile advertising here at the CEM blog or on many other blogs and news sites. The enthusiasm for mobile advertising can seem a little over-hyped, but every time a new report on the advertising industry is released, the enthusiasm is regularly confirmed. This morning ad agency ZenithOptimedia released its latest figures and provided some interesting insight into the rest of 2013 and the future in advertising.
Global Ad Spending to Break $500 Billion
According to a post by Ingrid Lunden at TechCrunch, ad spending “in 2013 will see steady growth of 3.5% to reach $503 billion” by the year’s end. Every year, internet advertising has taken a larger and larger chunk of the global ad spending. In the US that proportion will reach close to 22% of ad spending by the end of the year. That’s a hefty chunk of money (almost $110 billion).
Traditional advertising still maintains its lion’s share of global ad spending, but digital ads have gradually been getting a larger and larger chunk of those dollars. Of course, for any business or agency, it’s still wise to focus on traditional advertising – but it would be silly to ignore or completely lack a digital ad strategy.
Mobile Spurring Growth
One of the reasons global ad spending has been increasing steadily over the past few years is thanks to the growing mobile market. As more and more people adopt smartphones and tablets over traditional PCs/desktops that trend can only continue.
Ingrid reminds us that mobile grew “by 81% this year in the U.S. market.” It’s predicted to grow at 61% in 2014 as well. That’s a huge growth rate and simply reflects how important mobile advertising is becoming. Even more impressive, the report from ZenithOptimedia claims that by 2015, mobile ad spending “will be 25.2% of internet expenditure.”
If this report doesn’t convince you that mobile advertising is here to stay, well, I’m not sure what will. Mobile ads certainly aren’t taking over internet spending or traditional spending, but they definitely shouldn’t be ignored. Depending on your business and your market, mobile ads could be a great addition to your advertising campaign. If it doesn’t seem right for your business, keep an eye on research looking into effectiveness of mobile ads and always keep an open mind to a mobile ad campaign.
Ultimately, Ad Spending Is a Good Sign for the Market
A Reuters article covering the report adds a final important point from ZenithOptimedia’s chief executive, Steve King, about all of this data. Even though 2013 lacked huge advertising events like the Olympics and a U.S. election, ad numbers were still growing. Steve said “the advertising recovery is on track.”
This is a good sign for business, agencies, and the economy in general. Businesses are still spending on advertising which means they are confident in the results they will get from those advertising dollars. The savvy advertisers are the ones looking into all options, especially digital ads and mobile, to get the most from their money.
Do you use mobile advertising to reach potential customers? How important is it to your advertising campaign?
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