#Television is losing its longtime grip on #advertising budgets as digital spending continues to surge. In fact, by 2018 mobile is expected to become the number one format for digital advertising. A recent study predict conducted by ZenithOptimedia, predicts that mobile advertising will more than double in three years, with an expected growth rate of 32% per year over the next three years increasing from $50 billion this year to $114 billion by 2018. That increase places mobile at 50.2% of all Internet advertising – more than desktop, which is expected to reach $113 billion in 2018.
These figures place mobile at nearly 90% of all NEW advertising money in the global market. This accelerated growth places mobile advertising as the second largest advertising media format behind television, which is expected to generate $206 billion in revenue in 2015. This meteoric rise in digital advertising spend is also helped by a diminishing global growth for TV in developed markets. In fact, according to Vincent Letang from Magna Global, television growth in some developed markets is actually stagnate.
The prospect that digital advertising would capture more dollars than television has become an inevitably in recent years as the number of mobile devices currently used by consumers continues to increase at a mind blowing rate and advertisers slowly shifted their dollars from their print budgets to their digital ad purchases. The prediction by ZenithOptimedia is reinforced by recent data collected from Counselor’s State of the Industry study which found that over 54% of all businesses currently have a “mobile friendly” version of their site indicating that the the global economy as a whole has already created a significant platform for the proliferation of these new online ads. An important fact to consider with this trend is that the bulk of the format for these new digital ads are skewed toward online video, such as pre-rolls and social media platforms rather than conventional search and display ads. Savvy marketers will have their work cut out for them as they decide where and how this massive increase in digital ad budgets should be spent.