The popularity of smartphones and tablets is about to unseat TV from its ad spending throne.
With the popularity of smartphones and tablets, and with the skyrocketing rates of data traffic over those devices, mobile advertising has been expanding astronomically, to the point that it is now predicted that it will take over the top spot that has been long held by television.
A new report has shown that mobile marketing is about to take the top spending position for the first time.
A new report issued by World Newsmedia Network and FIPP Insight has revealed that mobile advertising spending online, worldwide, will be taking out TV from its top spot. The report stated that it won’t be long before ads over mobile devices will be the largest contributor to the increase in advertising spending. The estimates within the World Media Trends 2015 report stated that all of the mobile online and in-app ads delivered to smartphones and tablets, combined, are experiencing a growth rate that is nine times greater than that over desktops and laptops.
From 2014 through 2017 there is expected to be an average mobile advertising growth rate of 39.8 percent.
Comparatively, desktop online advertising is predicted to have an average annual growth rate of 4.6 percent throughout that same span of time. This aligned with the predictions from a previous report issued by ZenithOptimidia, in which it was estimated that the global spending on mobile ads last year came to $27.4 billion, which represented 22.1 percent of online ad spending, as well as 5.3 percent of the complete advertising spend worldwide.
In that report, it was predicted that the figure would increase to $75 billion by 2017, which would represent 40.4 percent of online spending and 12.7 percent of the total global advertising spending.
This new report underscored that mobile advertising has now become the primary driver in the growth of spending worldwide. Furthermore, it stated that it will generate $47.5 billion from the years 2014 through 2017. In comparison, television will be generating $17.6 billion within those same years, dropping that channel down to the second largest contributor to the industry, instead of its previous position as king.