Why Aren't You Spending Funds on Mobile Advertising?
According to an article by Business Insider, increased spending on mobile, social media, and digital video will propel U.S. digital advertising revenue to nearly $50 billion this year, and up to $82.7 billion in 2018. This growth is charted to the right. More importantly, as reported by Forbes, these mobile ads are actually effective-- which may come as a surprise, as the widespread perception seems to be that these ads don't work.
A study by Medialets, reported by Forbes, found that mobile ads draw not only clicks (a portion of which are reasonably suspected to be accidental) but conversions. Medialets' CEO Eric Litman says, "Mobile ads actually do work. People will do almost everything on their phone that they do on their desktop." This is not to say there is some huge percentage of people who click on mobile ads-- but their click-through rates are much higher than the 0.1% to 0.2% rate for desktop web ads.
So what does this mean? The mobile ad market is projected to grow the fastest, with mobile advertising revenue expected to reach $32.6 billion in 2018 and reach a 5-year compounded annual growth rate of 49.7%. This "mobile ad market" includes mobile search ads, mobile web and in-app display ads, and video ads on mobile. Secondly, social media mobile ads are (unsurprisingly) projected to grow faster than other digital ad formats and traditional mediums. If your business is not spending money on mobile advertising in the new year, you're missing out on a critical area!