eMarketer: Desktop ad spending to peak in 2014 as mobile spending surges


Advertiser spending on desktop formats like search and banners is expected to reach its peak in 2014, declining in subsequent years as brands shift their focus to the mobile platform, eMarketer forecasts.

eMarketer estimates that U.S. digital ad spending will climb to $41.9 billion this year, up 14 percent over 2012, with $7.7 billion--and the bulk of incremental growth in digital advertising overall--going toward mobile ads. Desktop ad spending will increase from $34.29 billion in 2013 to $35.39 million in 2014 before sliding back to $35.26 billion in 2015, falling all the way to $32.51 billion in 2017, just slightly above the amount spent last year. Both desktop banner and search advertising are expected to experience flat or declining growth in 2014 for the first time ever, eMarketer adds.

Total U.S. mobile ad spending is on pace to increase from $4.36 billion in 2012 to $27.98 billion in 2017, eMarketer notes. Mobile search advertising is expected to grow 76 percent this year and another 52 percent in 2014, representing a $2 billion year-over-year increase, while mobile banner advertising is expected to surge 100 percent this year and 54 percent a year from now, corresponding to a spending increase of nearly $1 billion.

Mobile will account for 36.4 percent of total digital ad spending by 2017, up from 9.1 percent in 2012 and a projected 14.7 percent in 2013. "A major reason for the shift toward mobile is simple: With more than half of U.S. mobile users now on smartphones, and time spent with mobile devices increasing each year, many digital publishers are looking to shift ad revenues to mobile," eMarketer said. "Smartphones and tablet devices also account for a growing portion of U.S. retail e-commerce sales, further contributing to advertisers' desire to shift dollars away from [the] desktop."

Source: eMarketer

A complementary study conducted by digital video services firm QuickPlay Media finds that U.S. consumers are more tolerant of mobile video ads than their counterparts in the U.K. and Canada. Consumers across all three nations still feel that most mobile ads are highly irrelevant and not specific to their interests, however--in addition, 20 percent or more of consumers across all three markets are willing to pay between $5 and $7 per month for advertising-free access to mobile video content.

For more:
- read this eMarketer report
- read this release

Related articles:
Google: YouTube mobile ad sales tripled over last six months
Millennial Media: Android trumps iOS with 52 percent of Q1 mobile ad impressions
Report: Android lags iOS in mobile ad spend, value
IDC: Facebook, Twitter usurp mobile display ad lead from Google, Millennial Media