Mobile advertising barely registers in the U.S. advertising industry. According to IAB, mobile ad revenues were $1.6 billion last year, or about 5 per cent of digital ad revenues and less than 1 per cent of total U.S. advertising spend.
The bull case for mobile advertising is usually predicated on ad spend catching up to the percentage of time Americans spend on their phones. While that gap seems destined to narrow, it is ultimately a red herring: with millions of Americans carrying smartphones on them 16 hours a day, ad spend doesn’t have to catch up to time spent for mobile advertising to be a huge opportunity.
We forecast that U.S. mobile ad spend will hit $6.6 billion by 2017.
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