It’s time to strike one more nail in the coffin of desktop advertising.
It’s all going #mobile (not saying we told you so….but…..)
According to a report from eMarketer as the bulk of digital spending is estimated to go toward mobile this year (to the tune of $7.7 billion), next year almost all desktop formats except digital video and sponsorships are expected to see declining spending or flat growth.
“The growth of mobile advertising is slowing spending directed toward desktop ad formats faster than expected, according to new figures from eMarketer, raising the question of whether spending on desktop formats like search and banners will ever grow again,” eMarketer’s report said.
Desktop ad spending will peak in 2014 at $35.39 billion, up from this year’s projected total of $34.29 billion, eMarketer said. By 2015, desktop spending will drop slightly to $35.26 billion and decrease further in 2016 and 2017, when it’s expected to total $32.51 billion—just above the amount spent in 2012.
Meanwhile, mobile advertising is taking off. Spending on mobile search advertising is estimated to increase 76 percent this year and a further 52 percent next year, eMarketer said. Mobile banner advertising is expected to grow 100 percent this year and 54 percent next year. This is in sharp contrast to desktop banner and search advertising, which are both expected to see flat or declining growth in 2014, for the first time ever, according to the report.
Last week, the PEW Internet & American Life Project released data showing that the majority of Americans own smartphones. Last month, a study from the Mobile Marketing Association estimated that mobile marketing will contribute $400 billon to the U.S. economy and generate 1.4 million jobs in the next five years. So, it’s not a shocker to see ad dollars pouring into mobile advertising.
“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,” the report said. “Smartphones and tablet devices also account for a growing portion of U.S. retail ecommerce sales, further contributing to advertisers’ desire to shift dollars away from desktop.”
What is startling, however, is the speed of the decline of the desktop; IDC now predicts tablet shipments will exceed those of laptops this year and expects tablet shipments to outpace the entire PC market, portables and desktops combined, by 2015. Earlier this year, IDC estimated that tablets shipment would surpass those of PCs this year and laptops by 2014. Add to this another IDC forecast predicting that the PC market will drop a whopping 7.8 percent this year paints a very bleak picture for desktop advertising.
Read more: Marketers abandoning desktop advertising faster than expected – FierceCMO http://www.fiercecmo.com/story/marketers-abandoning-desktop-advertising-faster-expected/2013-06-11#ixzz2W0rFjQHF
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