Media

Spending on Mobile Ads to Top TV Spending in 2018

Paul Ausick

Published: April 19, 2018 10:35 am

Last Updated: January 12, 2020 12:46 am

Spending on advertising to U.S. consumers generally follows those consumers wherever they go. In 2018, they’re going to their mobile devices and advertising is expected to follow along.

According to new research from digital marketing firm eMarketer, mobile advertising will take 33.9% of all media spending on advertising in the United States this year, while spending on TV advertising will nab a 31.6% share of those U.S. ad dollars.

Total U.S. ad spending is forecast to reach $220.96 billion this year, and spending on TV advertising is forecast to reach $69.87 billion. Those numbers represent an increase of 6.6% in total spending but a dip of 0.5% in spending on TV.

By 2022, according to the researchers, spending on mobile advertising will account for nearly half (47.9%) all media advertising spending while TV’s share drops to 24.8%.

eMarketer analyst Cory McNair noted:

Advertisers are pouring dollars into mobile due to growing mobile commerce activity. Conversions from mobile display ad placements have already surpassed those of desktop.

More than a quarter of all digital ad revenues (27.9%) this year will find their way to into the coffers of Alphabet Inc. (NASDAQ: GOOGL) and Facebook Inc. (NASDAQ: FB). Alphabet’s Google is expected to see ad revenues of $39.92 billion in 2018, while Facebook’s total is forecast at $21 billion.

For Google that total represents year-over-year growth of 14.5%, while Facebook’s growth rate is an even higher 16.9%. Those growth rates lead eMarketer to conclude that in 2019, advertising revenues for Google and Facebook alone will top U.S. TV ad revenues.

eMarketer estimates that mobile advertising will rise by 23.5% year over year in 2018, more than three times the 6.6% expected increase in total ad spending.