Latest on Mobile Usage and Ad Spend

Every so often – maybe quarterly – it is good to take a step back and take in a broader perspective of the market.

How are potential customers consuming information? What new tools or social networks are they using? How are organizations spending their ad budgets, what percent is mobile ad spend and what are their development budgets?

Not so much a competitive analysis – but rather a review of some of the latest reports to get a pulse on “what’s happening”.

A few reports were released in the last week that provide some new or updated insights to mobile usage and mobile ad spend.

First – the Pew Research Center released a report “US Smartphone Usage in 2015“.

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Nearly two-thirds of Americans are now smartphone owners, and for many these devices are a key entry point to the online world.

This is up from 35% in 2011.

10% of Americans (adults) own a smartphone but do not have any other form of high-speed internet access at home. 15% report limited access.

19% reported that one of the two conditions applied. This means 30% of American smartphone users, primarily rely on their smartphone for high-speed internet access.

This report includes all sorts of usage patterns by age demo, by income level and more.

Second – eMarketer released an update to their digital media buying report.

US mobile ad spend almost doubled in 2014 over 2013 from $10b to $19b, and is predicted to grow another 50% to $28b in 2015.

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$28b in US mobile ad spending would represent 49% of total US digital ad spending, and roughly 15% of total ad spend.

eMarketers goes on to forecast a US mobile ad spend of $65b in 2019, representing 72% of the digital ad spend and 28% of total ad spend.

Below is a breakdown for how this mobile ad spend is allocated. Mentioned in the report but not in this image is ad spend split between mobile web and in-app, with 70%+ going to in-app advertising – for 2014 and thru 2016.

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Both of these reports are well worth reviewing as lots more is shared than has been summarized here.

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