Mobile advertising will account for HALF of the expansion in the U.S. advertising economy this year and next, according to the fall edition of ZenithOptimedia Group’s quarterly forecast. That forecast, released earlier this week, projects overall U.S. ad spending will grow 3.4% in 2013 – followed by a 4.5% expansion in 2014 and 4.6% growth in 2015.
Mobile advertising is defined as ads on wireless handheld devices, including smartphones (such as the ever-popular iPhone) and tablets. The forecast by ZenithOptimedia Group notes that mobile advertising is expected to account for just 3.7% of total U.S. ad expenditure in 2013 – but also reports that mobile ad spending will grow 81% in the U.S. in 2013 (to a total of $6.2 billion in mobile ad spend), followed by an expansion of 61% in 2014 and 53% in 2015.
From 3.7% of total advertising spend in 2013 to 8.4% of the U.S. advertising pie just two years later – now that’s what you call rapid, aggressive growth.
ZenithOptimedia North America CEO Tim Jones called it something else: an official arrival date for mobile advertising in America.
“After years of hype, mobile advertising has finally arrived,” said Jones. “Its importance will only grow over the next few years as advertisers and agencies get to grips with the opportunities it offers, and improve its ability to measure and deliver return on investment.”
Of course, there are more and more good reasons for advertisers to spend more and more money on mobile advertising. For one, there’s the sheer prevalence of smartphones and mobile devices. As if you didn’t need to just look around you at any given moment to reveal just how tethered we are becoming to our mobile devices, you can also ponder the fact that Apple sold more than 9 million new iPhones – during its first weekend on the market.
And as these smartphones continue to reside in more and more hands across America, more and more Americans are beginning to use them to do more and more things. According to e-tailing group Local, one of the hottest things to do with your smartphone now is conduct product shopping research. In fact, according to a recent study by Local, product shopping research via smartphone rose from 34% in 2012 to a whopping 73% in 2013, in terms of the percentage of smartphone users who said they used their device to conduct certain activities. The study, which explored shopping trends and analyzed the role smartphones play in the shopping process by surveying over 1,000 smartphone-enabled shoppers, also revealed that 49% of consumers can both locate ratings and reviews and find and assess return policies with ease. The study also said 68% use their smartphones to find coupons that are redeemable at local retail stores.
Of course, there’s also the global surge in mobile commerce and purchasing to consider. According to a recent report known as the Adyen Global Mobile Payment Index, mobile payment transactions have increased dramatically in America and well beyond in recent months, and now account for 17.5% of all digital purchases worldwide. Many smart and progressive retailers, such as sandwich chain giant Subway, are even creating mobile payment apps, or “mobile wallets,” allowing customers to pay for their purchases fast and easy via their smartphones. Yes, much more awaits when it comes to mobile commerce.
All of this data makes it increasingly and abundantly clear that it pays to invest in mobile advertising as the calendar steadily creeps toward 2014. And as we’ve said here before at the official blog of Amplitude Digital, it also pays for you to ensure that your business’ website has been optimized for mobile usage.
Of course, the surge in digital advertising and marketing isn’t all about going mobile. The quarterly forecast issued by ZenithOptimedia also noted that non-mobile internet ad spending continues to expand at a rapid rate. Expected to account for 21.8% of all U.S. ad expenditure in 2013 (up from 19.0% in 2012), total digital ad spending is predicted to reach nearly 28% of the total U.S. advertising pie by 2015. The growth rates for 2013, 2014 and 2015? That would be 10%, 10% and 8%, respectively.
We’ve also opined about our undying belief in digital advertising and marketing before – and our assurance that mobile be included in your digital media mix.
What do you think? Have you and your business invested in much, if any, digital advertising yet? And if so, has your investment included any measure of mobile advertising? Let us know in the comments section below this blog.
And contact us today if you’re ready to learn more about how digital and mobile advertising and marketing can boost your business and your brand in today’s always-online, ever-evolving consumer marketplace.