Mobile ad spend is booming In just a year, spending on mobile advertising in the U.S. climbed 89 percent to $15.5 billion, accounting for nearly half of digital ad budgets. In the process, it bypassed search as the digital format that accounts for the most ad spend. Additionally, the report found that 47 percent of all search and display revenue now comes via mobile, up 17 percent from 2015. Social ad spend is on the rise as well As mobile spend has grown, so, too, has social media revenue. Social media ad revenue is up 57 percent from the same time period last year, continuing its consistent upward trend since the IAB first began measuring the variable back in 2012. While people spend much more time watching digital video on desktop devices, social networks account for a much higher timeshare on mobile. A lot of this activity comes from apps like Facebook, Twitter, and Snapchat, which account for the vast majority of time spent. But in the first six months of 2016, digital video revenue on smartphones and tablets exploded to $1.6 billion, an impressive 178 percent growth over the previous year. Digital video is also the only format still achieving meaningful growth on desktops, rising 13 percent in revenue from 2015. This rapid increase in spending can be tied to social media.
Last week, Facebook
announced that it had reached 1 billion mobile-only monthly
users. Meanwhile, October was the first month when mobile and
tablet devices accounted for more pageviews than desktops,
according to analytics firm StatCounter.
Both highlights signal the culmination of a trend that has been
simmering for a while now: Mobile devices have taken over media
consumption.
There’s only so much time in a day, and mobile’s growth has come
at the expense of other formats. Per eMarketer, time spent with
every
medium—including advertising giants like TV, radio, and
print—has been colonized by mobile devices.
The Interactive Advertising Bureau’s (IAB)
latest revenue report, released on November 1, shows that
advertisers are finally catching up to these trends. Here’s
how.
1. Mobile ad spend is booming
In just a year, spending on mobile advertising in the U.S.
climbed 89 percent to $15.5 billion, accounting for nearly half of
digital ad budgets. In the process, it bypassed search as the
digital format that accounts for the most ad spend.
However, it’s important to note that search and banner ads are
still thriving during the mobile boom. Most of the mobile revenue
(87 percent) consists of search and banner investments.
Additionally, the report found that 47 percent of all search and
display revenue now comes via mobile, up 17 percent from 2015.
2. Social ad spend is on the rise as well
As mobile spend has grown, so, too, has social media revenue.
Social media ad revenue is up 57 percent from the same time period
last year, continuing its consistent upward trend since the IAB
first began measuring the variable back in 2012.
While people spend much more time watching digital video
on…
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