Experts forecast that nearly 25% of total media ad spend will go toward digital formats appearing on desktop and laptop computers as well as mobile phones, tablets and other connected devices. They project the amount spent on digital advertising in the US will increase 13% to around $48 billion in 2014, boosted in particular by the 50% rise in mobile ad dollars. Roughly, 21% of digital spend will be from mobile advertising (~10B). (See our previous post for more details)
Desktop ads will continue to dominate with 67% of the budget, however advertisers are rapidly turning to mobile to reach the growing smartphone, tablet and mobile internet audiences. Desktop ad expenditure is expected to peak next year at $31.50 billion and then begin to decline as mobile gains traction. According to eMarketer, by 2017 spending on mobile will surpass desktop investments.
Social media will account for 12% of the total digital spend or $6B in 2014. This represents an annual growth rate of 27%. Facebook will take in nearly seven out of 10 dollars earned through social platform advertising in the US. Twitter is the second-largest social network ad publisher, but is far behind Facebook, with projected ad revenues of $750 million in 2014, or 14% of the total. LinkedIn’s earnings will be half the size of ad revenues from Twitter, at $327 million, or a share of 6% in 2014.
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How will this translate to local businesses in 2014?
The opportunities are great for marketing service providers. In fact, according to one of our recent SMB surveys 30% of small businesses plan to increase their digital budgets in 2014. Top areas for increases were Company Websites, Paid Search, Social Media and Online Video with 37%, 32%, 32%, and 29% respectively. The main reasons cited for the expected changes are around staying competitive and seeing better ROI versus traditional forms of media. As for the specific increase range planned for each medium, the average SMB plans to increase their current Website budget by 10-15%, Paid Search by 15-20%, Social Media by 20-25%, and Online Video by 5-10%.
What are you doing to capitalize on these trends?