Advertisers Go Mobile: Mobile Ad Spending Up 76% in 2014

Last year Internet advertising revenue in the U.S. totaled $49.45 billion, a 16% increase over 2013 spending, according to the Interactive Advertising Bureau’s April

Last year Internet advertising revenue in the U.S. totaled $49.45 billion, a 16% increase over 2013 spending, according to the Interactive Advertising Bureau’s April 2015 report. Mobile ad revenue made up $12.5 billion, a 76% increase over 2013 spending. Mobile advertising now represents 25% of total Internet advertising, an 8% increase over 2013.”Marketers clearly recognize that consumers are leading mobile-first lives and are investing their ad dollars accordingly. The news of digital video’s double-digit growth is also no surprise,” said IAB President and CEO Randall Rothenberg in the report.Here is the breakdown by ad format.

Internet Advertising Spending 2014

           David Silverman, Partner, of PricewaterhouseCoopers (PwC) who prepared the report, added “High double-digit growth in mobile advertising is a reflection of the continued shift in consumer behavior away from desktop and towards mobile devices. A prominent rise in Social, a significant mobile activity, is driving growth in advertising revenue as consumers spend more time connected.”According to statistics quoted by the Financial Times, adults in the U.S. are now spending more time on their mobile devices than they are on their computers. In 2015, it is estimated that average time on a mobile device per user will be 2 hours and 51 minutes per day versus 2 hours and 22 minutes on desktop and laptop computers.Insider Take:What does this mean for subscription companies? It means we have to adapt from more traditional Internet advertising methods to go where our target audiences are. We need to evaluate at our own ad spending to see what our individual trends are and shift money to mobile categories, including search and display ads. This includes examining our own metrics and finding out how new customers are learning about us. We should to do this at least quarterly, so we spot trends early and can shift spending as needed.We also need to consider what social media platforms are the most popular with our target markets, and consider advertising on those channels, whether it is Facebook, Twitter, Snapchat or Instagram. With Americans spending nearly three hours a day on their phones, we have an excellent opportunity to share our subscription products with branding, promotions, special offers, and more through mobile advertising.[Note: Yesterday Verizon announced its purchase of AOL for $4.4 billion to help it dominate both mobile and Internet content worlds.] 

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