Log in

Report: U.S. Ad Spending to See Largest Increase Since 2004

2 Jul, 2014 By: Chris Tribbey

Total ad spending in the United States will see its largest rise in a decade, with total ad investments jumping 5.3% to $180.12 billion, according to a new report.

The last time overall ad spending jumped more than 5% was 2004 (6.7%), according to the data from eMarketer.

Part of the jump is due to mobile, with advertisers spending 83% more on tablets and smartphones than they did in 2013, an increase of $8.04 billion. Accounting for 10% of ad spending, mobile for the first time will surpass spending on newspapers, magazines and radio, making it the third-largest individual advertising venue (behind TV and desktops and laptops).

“Though investments in TV advertising will rise just 3.3%, advertisers will spend $2.19 billion more on the medium than they did in 2013, making it the second-leading category in terms of year-over-year dollar growth,” eMarket said in a statement. “The surge in mobile advertising is chiefly attributable to the fact that consumers are spending more and more time with their tablets and smartphones.”

American adults will spend an average of nearly three hours per day on mobile devices this year, according to the report. TV will hit nearly four and a half hours per day.

“Strong, steady growth in mobile advertising will push digital ads to represent nearly 30% of all U.S. ad spending this year,” eMarketer wrote. “Advertisers will invest more than $50 billion in digital channels in 2014 for the first time, an increase of 17.7% over 2013. Just over one-third of that will come from mobile, but by 2018, mobile will account for more than 70% of digital ad spending.”

Google alone accounts for more than 10% of all ad spending in the U.S., and in 2016, Google and Facebook combined will take a 15% share of the $200 billion media ad market.

Add Comment