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Posted by Jitender Miglani on May 8, 2014
The advertising industry mega-trend of the last decade — ad dollars shifting from offline to online media — is continuing in this decade, as well. This is because more and more users are becoming "addicted" to the Internet. According to a recent study by the Pew Research Center, “The Web at 25 in the U.S.,” it has become harder for consumers to give up the Internet than TV. Fifty-three percent of Internet users say the Internet would be very hard to give up, up from 38% in 2006. Only 35% of adults say their television would be very hard to give up, down from 44% in 2006.
The mega-trend of the decade is the shift of ad dollars from desktop/laptop to mobile devices. Based on Forrester estimates, US mobile ad spend was just 6% of total US online ad spending in 2011. The share of US mobile ad spending in the total US online ad spending is expected to reach 44% by 2019. All three components of mobile advertising — display, search, and social — will witness increases in their spend levels.
According to Nielsen, US adults are already spending more time online using their smartphones than their PCs. There remains a significant gap between the time spent on mobile versus the advertising dollars it attracts. As advertisers chase engaged users, this gap will close as the advertisers shift ad spending from offline media and other forms of online media to mobile. Based on our recently published Forrester Research Mobile Advertising Forecast, 2014 To 2019 (US), Forrester expects total mobile ad spending in the US to reach $40 billion by 2019. Mobile social will witness the fastest growth trajectory, whereas mobile search will continue to be that largest component of mobile advertising spend by 2019.
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