In the year 2020, mobile will surpass TV ad spending by more than $6 billion, according to our latest ad spending forecast. By 2020, the channel will represent 43% of total media ad spending in the US—a greater percentage than all traditional media combined.
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Martin Utreras, VP of Forecasting at eMarketer says.
"Even the strongholds of TV, such as live sports and news, are starting to move online, and people are consuming them on the go through mobile devices. Audiences continue to abandon traditional media, and ad dollars follow."
According to our estimates, mobile will account for $76.17 billion of US media ad spending in 2018. That's more than TV ($69.87 billion)—and it's significantly more than print ($18.74 billion), radio ($14.41 billion) and out-of-home ($8.08 billion).
By the end of the forecasting period (2022), mobile ad spending is expected to more than double that of TV. The channel will make up $141.36 billion of US media ad spending, while TV will account for $68.13 billion.
Utreras said.
"With respect to TV, content like news and sports are starting to move online, so we expect to see a shift in dollars for those categories as well. At the same time, we increased growth for mobile, as companies like Facebook and Google are still driving double-digit growth. Part of that is driven, of course, by digital video growth coming from platforms like YouTube and Facebook."
COMMENTARY: according to Kantar Media data shared with Marketing Dive. Total U.S. ad spend in 2018 reached $151 billion, a 4.1% increase over 2017.
The top 5 brand advertisers for 2018 included:
- Procter & Gamble remained the top advertiser for 2018, increasing spend by 4.7% to reach $2.9 billion. P&G was displaced by Samsung as the top spender among marketers in Ad Age research from late 2018 that takes a wider look at spend across advertising, marketing services and digital marketing.
- AT&T spent $2.2 billion, a 6.1% decrease over 2017.
- Berkshire Hathaway with $2 billion, a 4.8% increase over 2017.
- Comcast shpent $1.9 billion, a 21% increase over 2017.
- Amazon, which ranked No. 5, increased its ad spend by 72.5%, reaching $1.8 billion.
The top 5 advertising sectors for 2018 included:
- Retail was the No 1 spender at $17.8 billion, a 5.4% increase over 2017.
- Automotive ranked No. 2 with $14.3 billion, a 3.3% drop over 2017
- Telecom ranked No 3 with $8.6 billion, a 1% increase over 2017.
- Political and Organizations ranked No 4 with $6.7 billion, a 93% increase over 2017.
According to eMarketer, mobile ad spend will top $93 billion in 2019, over $20 billion more than what will be spent on TV. With so much money flowing into mobile advertising, what will be the big changes and trends in the mobile landscape in 2019?
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- What are major trends outside of advertising that will affect the mobile advertising ecosystem? The trend toward privacy regulation will likely continue in 2019, which will affect data use. Consumers are also looking for ways to reduce screen time, which may increase opportunities in audio advertising. One trend that won’t affect advertising yet is 5G, which won’t come on line with any scale until 2020, but it will begin to affect investments in media and ad tech.
- What will happen in mobile video in 2019? Many of the large platforms will double down on high-quality video shows geared for a mobile audience. This will increase demand for vertical video. Video advertising will also become less skippable and more interactive.
- How will artificial intelligence (AI) influence mobile advertising? It’s hard to limit the impact of artificial intelligence to just a few areas, but three important ones will be personal assistants, modeling consumer paths to purchase and augmented reality (AR)—particularly visual search. The role of personal assistants might be the most important, since tools such as Siri, Google Assistant and Alexa will tie the mobile phone more deeply to the rest of our device ecosystem.
U.S. ad spending expanded 4.1% in 2018, according to final estimates released by WPP's Kantar Media unit. That is only slightly off the 4.2% expansion in the U.S. Gross Domestic Product (GDP).
Advertisers spent $151.7 billion in 2018, across the media tracked by Kantar Media -- the highest total ever.
The expansion comes despite a 3.3% erosion in the automotive category -- traditionally one of the U.S. ad industry's largest categories -- and relatively modest growth in top categories such as retail (No. 1), telecommunications (No. 3) and pharmaceuticals (No. 9).
Thanks to record spending for the 2018 midterm elections, political ad spending surged 93.1% and ranked as the No. 8 category.
Media also became one of the highest-growth ad categories, expanding 27.3% to rank as the tenth-largest ad category in the U.S.
Top advertisers essentially mirrored their category movement, with AT&T and Pfizer both declining, and Amazon jumping 72.5% to rank as the nation's fifth-largest advertiser last year.
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Courtesy of an article dated October 16, 2018 appearing in eMarketer and an article dated January 24, 2019 appearing in Marketing Dive and an article dated January 24, 2019 appearing in MediaPost Media Daily News and an article dated December 6, 2018 appearing in eMarketer
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