One In Every Seven Dollars Spent On Digital Advertising In The US Goes To Mobile

Mobile is making significant gains as a share of digital ad spend in the U.S., according to a newly released report from the Interactive Advertising Bureau (IAB).

Of all the ad categories tracked, only mobile and digital video increased their shares of digital ad spend. All other formats lost share or were flat. Here are the important bits:

  • Mobile advertising is now 15% of digital ad spend in the U.S. At the same time last year, it was only 7% of spend.
  • Search is slipping. It shrank from 48% to 43%.
  • Display/Banner ads lost 2 percentage points of share and now account for 19% of digital ad spend.
  • Together, search and display continue to command a dominant 62% share.
  • Digital video is now at 7% of ad spend.
  • On the whole the digital advertising has experienced a compound annual growth rate of 19.6% since 2003, according to IAB’s data.
  • If the current growth path persists, digital ad spend will total $US44 billion for 2013.

The IAB commissioned PwC to collect the data, which is comprised of aggregated survey responses from companies in the industry and publicly disclosed information.

Download the chart and data in Excel.

The increase in mobile ad spend isn’t surprising considering the widespread adoption of mobile devices and that mobile ad spend still lags as a proportion of time consumers are spending on mobile devices.

Mobile advertising revenues for the first half of 2013 amounted to $US3 billion. This is a 145% increase from the same period in 2012. PwC Partner David Silverman said the growth is indicative of “the profound shift in how consumers are viewing media — on their mobile devices wherever they go”.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.