Where's the Mobile Ad Money Coming from Next Year? - eMarketer

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Where's the Mobile Ad Money Coming from Next Year?

Smartphones beat tablets for delivering ad results; tablets win for engagement

October 30, 2014

Advertisers are shifting ad dollars to mobile and away from other formats in order to drive customer engagement, reach consumers across platforms, build brand awareness and drive retail or online sales, according to a July 2014 study by Advertiser Perceptions. But where will those dollars come from over the next year? Print, television and digital display are the chosen ones.

Sources of Funding for Increased Mobile Ad Budget According to US Advertising Decision-Makers, July 2014 (% of respondents)

More than 40% of US advertising decision-makers who planned to increase mobile ad spending over the next 12 months said they were taking money out of their print advertising budget to do so, while 34% said the same about TV ads. Even digital ads aren’t safe. Nearly one-third of respondents said they would lower investments in digital display advertising in order to spend more on mobile. A lucky 38% of respondents planned to fund higher mobile spending thanks to an overall expansion of their budgets.

Mobile will likely continue to grab ad dollars away from these formats—and possibly others—as it continues its rapid expansion over the coming years. This year, eMarketer estimates that US advertisers will increase spending on mobile ads by 78.0%, pushing the total to nearly $19 billion, and next year, growth will come in at 50.0% for mobile ad spending of $28.48 billion. Even in 2018, expenditure on mobile advertising in the US will expand by nearly 20% to raise the total to $58.78 billion.

Performance of Smartphones vs. Tablets in Select Mobile Advertising Areas According to US Advertising Decision-Makers, July 2014 (% of respondents)

Whether advertisers put their mobile dollars toward smartphone or tablet ads depends on what they’re trying to achieve. Advertiser Perceptions found that smartphones were better than tablets for delivering ad results such as impressions, awareness and return on investment, and they also beat the bigger screen for audience and targeting. Meanwhile, tablets won for engagement and user experience.

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