Why Mobile Advertising Dominates | Top Advertising Firms

September 12, 2016

Top advertising firms understand that there are multiple venues whereby to capture a consumer’s imagination. One important platform is mobile advertising. Yet even the most forward-thinking might be surprised by just how dominant mobile has become and how critical it will be over the next few years.

A Rapid Shift to Mobile

The statistics tell the story. In 2015, mobile ad spending surpassed desktop ad spending for the first time in history, taking 52 percent of the overall digital ad market. This represents a massive 14-point increase since 2014. And this is just the beginning.

According to research published by eMarketer, mobile ad spending will reach 63 percent of all digital spending by the end of 2016, and 70 percent by 2019. This year, global mobile ad spending will cross the $100 billion threshold.

Driving Factors

Two key factors are driving this rapid shift to mobile: consumer behavior and social networks. Mobile advertising’s share of overall digital ad spending is rising with the increasing amount of time people devote to their smartphones and tablets.

This year, the average U.S. resident will spend more than three hours per day (excluding voice activity) on their mobile device, according to eMarketer. Meanwhile, Facebook, Twitter and other major social platforms continue to maintain a laser-like focus on mobile, reaping billions in mobile ad dollars annually.

Yet, there’s another, perhaps less obvious factor influencing mobile growth: greater confidence among top advertising firms in the efficiency of mobile ads. Although mobile conversion rates have historically lagged behind desktop conversion rates by a large margin, new technologies and refined targeting approaches are expected to change this considerably.

Untapped Potential

According to the 2015 KPCB Global Trends Report, print media represents just 4 percent of total consumer media consumption, yet earns an outsized 18 percent of all advertising spending. Television represents 37 percent of total consumer media consumption and earns a more balanced 41 percent of total advertising spending.

Mobile, on the other hand, represents 24 percent of total consumer media consumption—yet only earns 8 percent of all advertising spending. That is, by far, the largest disparity of time spent versus ad dollars spent in any category.

This is a key indicator that there is still massive room for growth and opportunity in mobile ads.
As top advertising firms continue to look for innovative ways to advertise, they should reassess their mobile advertising strategy. By doing so, they will reap dividends for their clients now and into the future.