Display Grabs Larger Share of Rapidly Growing Global Mobile Ad Spend

August 14, 2014

This article is included in these additional categories:

Asia-Pacific | Digital | Europe & Middle East | Global & Regional | Mobile Phone | Spending & Spenders

IABIHS-Global-Mobile-Ad-Revenues-by-Format-2013-v-2012-Aug2014Global mobile advertising revenues almost doubled from $10.1 billion in 2012 to $19.3 billion in 2013, details a new report [pdf] from the Interactive Advertising Bureau (IAB) and IHS. While search remained the dominant revenue format, its share of total revenues remained flat at 48.9%, as its 92% year-over-year increase in revenues was on par with the overall gains. Display ad spending showed more rapid growth, more than doubling en route to 41.5% share of total revenues, up from 35.7% the year prior.

Mobile display ad revenues grew most rapidly in Latin America, though they began from the smallest base. Display gains – on an absolute basis – were more significant in North America, where spending almost tripled, up 173% year-over-year.

While mobile display ad spending is increasing rapidly in North America, a recent MarketingCharts Debrief [download page] on stated advertising influence indicates that few adults ascribe purchase influence to mobile display ads in comparison to other advertising channels. Nevertheless, mobile display ads tend to have an outsized influence on key demographic segments, per the study, including affluents, Millennials (for smartphones) and Baby Boomers (for tablets).

For the time being, display’s share of North American mobile ad revenues is slightly lagging the global average (40.3% and 41.5%, respectively), as search maintains a majority 53.2% of mobile ad revenues in the region. Indeed, mobile search advertising spend more than doubled in North America, per the study, outpacing growth in other major markets.

With mobile display and search ad revenues quickly rising, North America overtook Asia-Pacific to become the world’s largest mobile advertising market, with $8.1 billion in revenues. The IAB recently reported that mobile ad revenues in the US grew to $7.1 billion last year, or 17% of total online ad revenues. Along with that increasing spend, new research indicates that mobile owners in the US are developing more favorable attitudes to mobile advertising.

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