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Ads on Handheld Devices Gain Momentum

2 Oct, 2013 By: Doug McPherson

NEW YORK – Ads on tablets and smartphones will account for half of the expansion in the U.S. advertising economy in 2013 and 2014, says ZenithOptimedia Group’s quarterly forecast. The group also says that U.S. ad spending will grow 3.4 percent in 2013; 4.5 percent in 2014; and 4.6 percent in 2015.

The predictions make mobile one of the fastest-growing markets in the global ad economy and the biggest single contributor to the worldwide advertising marketplace.

ZenithOptimedia says mobile ad spending will grow 81 percent in the U.S. in 2013, followed by an expansion of 61 percent in 2014 and 53 percent in 2015. “By 2015 we expect mobile to account for 8.4 percent of total ad expenditure, narrowing the gap between mobile’s share of ad expenditure and its share of consumers’ time spent across all media,” the agency noted.

It adds that mobile’s growth has been spurred by consumers’ demand and better-standardized mobile ad formats.

“After years of hype, mobile advertising has finally arrived,” states ZenithOptimedia North America CEO Tim 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.”

Non-mobile Internet ad spending is continuing to grow faster than the rest of the U.S. ad economy; it’s now projected to jump 10 percent this year and next. The report forecasts total Internet advertising (desktop and mobile) to account for 21.8 percent of all U.S. ad expenditure in 2013, up from 19.0 percent in 2012.

TV has fallen below 40 percent of U.S. ad share, accounting for 38.8 percent of budgets in 2012, despite the incremental boost of the Olympics and elections last year. With the absence of Olympics and elections, ZenithOptimedia forecasts just 2.9 percent growth in 2013.

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