In US, Internet Advertising Overtakes TV Advertising

This is not the first such market in the world, but it is one of the most important. Expenditures on online advertising amounted to $42.8 billion in the United States in 2013. That’s about 17 percent more than last year, according to a summary by the Interactive Advertising Bureau and Pricewaterhouse Coopers. In Poland, the increase in online advertising was much more modest: Last year, companies spent more by 10.2 percent — up to 2.4 billion zloty.

The mobile advertising market especially keeps gaining speed. In 2013, revenues from these forms of online advertising, which is directed at the owners of mobile phones, reached $7.1 billion across the ocean, and were more than twice as high as last year, when they were at $3.4 billion. Our report clearly indicates that we have entered a “post-desktop” era. The three-digit growth rate of revenue from ads targeted at mobile users strongly deviates in growth from the rate of expenditures on advertising targeted at Internet users of traditional PCs. This shows how and where Internet users browse information of interest to them — on the run! — says David Silverman, a partner at PwC.

In U.S., Internet before TV

The largest portion of the U.S. online advertising market is that used by search engine mechanisms (in Poland, it’s display advertising, 43 percent), next is display advertising, at 19 percent, and then mobile, which constitutes a 17 percent share.

However, not only the staggering growth of mobile advertising is worth our attention. It should not be a surprise that in the past year, Internet advertising has overtaken TV advertising. This just goes to show the power of the Internet and the size of the audiences it gathers today. If you add the tremendous growth of mobile advertising, it is clear that small screens play a huge role in the lives of consumers each day, as well as their willingness to use them alternately, says Randall Rothenberg, IAB CEO.

Mobile Advertising Will Overtake Radio, Magazine and Outdoor Advertising

According to recent predictions made by the group of media houses ZenithOptimedia, global mobile advertising expenditures are growing six times faster than advertising expenditures on stationary equipment. In the 2013 to 2016 period, they will increase by an average of 50 percent per year. During this time, advertising directed at stationary devices will grow at a rate of 8 percent per year. ZenithOptimedia analysts estimate that by 2016, global expenditures on mobile will reach a value of $45 billion, which will constitute 28 percent of online advertising expenditures and 7.6 percent of all expenditure on advertising.

Mobile will therefore become the fourth largest medium, and the value of expenditures on advertising in this medium will be higher than in radio, magazine and outdoor advertising, states the report.

In turn, eMarketer estimates that this year, the revenue from all digital ads displayed to users of laptops, computers, tablets, smartphones and connected TV will reach $137.5 billion. That’s over one-quarter of the total advertising market in the world.