Advertisers have flocked to the Internet and mobile as consumers change behavior
The face of the world’s media market is changing. Advertising dollars are increasingly flowing from traditional ads to digital. Increased spending on mobile, social media and digital video propelled U.S. digital advertising revenue to $49.5 billion for the full year of 2014, a 16% increase over 2013.
Total U.S. digital ad revenue is expected to grow to about $82 billion in 2018, according to Business Insider Intelligence and the Interactive Advertising Bureau.
Digital advertising is becoming a dominant force in the global media advertising market. Newspaper advertising revenues are declining, while radio and magazine advertising are expected to increase slightly through 2018. Worldwide, digital advertising will reach about $250 billion by 2018, rivaling TV ad revenue, according to McKinsey & Company’s Global Media Report 2014. The report calls that possibility “a development perhaps unforeseen even 10 years ago.”
The chart shows how quickly advertisers moved to the Internet in the late 1990s and mobile this decade. Going forward, mobile is projected to be the fastest-growing advertising channel. Indeed, mobile advertising in the U.S. totaled $12.5 billion during 2014, a 76% increase from the prior year total of $7.1 billion. The huge growth of mobile ad spending is a result of advertisers “chasing eyeballs” as audiences migrate their media consumption to mobile devices.