Digital Ad Spending: Over the Top?

Posted by Sam Churchill on

Will Google, Facebook or others invest in wireless? Let’s look at the numbers provided by eMarketer. While nobody’s projections can be expected to be very accurate, I’m fond of eMarkerter’s charts. They’re clear and don’t equivocate.

According to eMarketer, advertisers in the US and Canada both devoted around one-quarter of total media budgets to digital last year. In 2014, eMarketer estimates, US advertisers will devote 28.2% of total budgets to digital.

By 2018 eMarketer expects 37.3% of total US ad spending will be for digital ads.

US advertisers spend nearly $565 per person, on average, to reach each consumer in the United States in 2014. That is expected to increase to $670 by 2018.

eMarketer estimates that the United States will pass $180 billion in advertising spending this year, or nearly one-third of the worldwide total. Mobile will lead this year’s rise in total media ad spending.

By 2018 digital ad spending in the US will pass tv ad spending, according to eMarketer.

By 2018, mobile will account for more than 70% of digital ad spending, totaling some $82 billion in the United States.

Google is expected to control more than half of mobile advertising dollars worldwide in 2014 (some $32 Billion), according to eMarketer.

Many people say Google will not invest in wireless. But Google’s investing in Fiber, which is much more expensive per user, and they’ve got the world’s biggest ad network.

Of course they’ll invest in wireless.

Google is a consumer-facing ad company. They don’t need a business alliance as much as Microsoft and Apple do.

Clear Channel Outdoor, the largest billboard advertiser, is building on their global launch of Connect, which utilizes Near Field Communication (NFC) tags, QR codes and SMS capabilities.

If Google and Facebook don’t build WiFi and LTE networks, perhaps billboard advertisers will. A billboard would make one heck of a MIMO array.

Posted by Sam Churchill on Wednesday, July 16th, 2014 at 11:28 am .

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