Consumers are moving over to tablets and smartphones for online browsing, and the advertising industry is following. Mobile advertising will account for the majority of U.S. online ad spending by 2017, according to an eMarketer forecast, as the trend toward increased mobile usage continues.
The momentum of digital search advertising money has made a decided directional change in the past three years. The study found that in 2010, 2.1 percent of search advertising was spent on mobile devices, a number that has now reached 22.1 percent of digital search spending. By 2017, that figure is expected to reach 59.6 percent, according to eMarketer.
Within the online advertising category, display advertising is expected to catch up with the search ad spend and then overtake it. Search advertising this year across all devices is a $19.6 billion enterprise, while digital-display spending is at $17.6 billion.
Digital-display ad spending includes the total costs associated with buying video, rich media, sponsorships, banners and other display formats, such as Facebook’s sponsored stories or Twitter’s promoted tweets.
Combined display spending next year is forecasted to reach $20.6 billion, nearly equaling expected search spending ($21.6 billion), with display advertising beating search by 2015.
Mobile Moves Up
Within display spending, mobile is expected to hit 21.7 percent of spending this year, going up to 48.4 percent by 2017. Video is the fastest-growing segment for display ads in the forecasted period, and may account for just under one-third of display spending by 2017.
The eMarketer estimates are based on information from various sources, including reported revenues from ad-selling companies, interviews and data from the Interactive Advertising Bureau and PricewaterhouseCoopers.
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