The amount of advertising dollars spent online and on mobile devices is projected to double between 2020 and 2024, according to a report by a consultancy.
The report, compiled by the Digital Advertising Alliance, an industry group that advises the U.S. Department of Commerce, says that by 2025, digital advertising will account for $100.5 billion of total spending by marketers, up from $98.3 billion in 2018.
The report predicts that this growth will be fueled by more than $25 billion in spending by brands on mobile platforms by 2020.
The growth is fueled by mobile-first advertising, where advertisers use devices like smartphones and tablets to reach potential audiences, instead of traditional television, according the report.
“We’ve been seeing more of an emphasis on mobile over the last year, with advertisers taking advantage of the availability of the devices and the speed at which they can reach their audiences,” said Matt Wood, a partner at the consultancy.
Digital advertising spending in 2020 is projected at $1.1 billion, up 10% from $950 million in 2020. “
Mobile advertising has become a bigger driver of growth.”
Digital advertising spending in 2020 is projected at $1.1 billion, up 10% from $950 million in 2020.
But that is projected only to grow in 2024 and 2025.
“Advertisers can’t wait to see the potential that the devices will bring,” Wood said.
“The challenge for them is, how can they get more people to go out and use them?”
Advertiser interest in mobile ads is high, but the report finds that most consumers are still reluctant to spend money on mobile advertising.
The majority of consumers said they are not interested in spending money on ads in mobile, according a 2017 Pew Research Center survey.
A Pew study last year found that 57% of Americans are unsure whether they would be willing to spend $1 on a mobile ad.
According to the report, the top three factors driving the digital advertising boom are: increased mobile adoption, increased user interest in brands and increased revenue.
Mobile is also a key segment of the industry, with 76% of U.N. agencies surveyed in 2018 saying they have mobile ads on their website, according with a 2017 survey by the Pew Research Institute.
In 2019, the United Nations estimated that mobile ads accounted for nearly 20% of its digital ad sales, up slightly from 19% in 2018, the year the United States and the U:led the global campaign against Ebola.
Mobile advertising is also driving the growth in digital advertising revenue in 2019, with digital advertising accounts for about $14.2 billion in digital ad revenue, up 17% from the year before.
The increase in digital ads and advertising revenues is due in part to the rapid growth of mobile devices, and the fact that the advertising dollars are being spent on mobile ads, according.
The companies are also increasingly experimenting with mobile-only and “mobile-first” advertising, Wood said, in which advertising is served only on a smartphone or tablet.
Mobile devices are becoming more accessible for consumers, as they become more popular in many countries, said Kevin McAllister, a senior director at the Digital Media and Telecommunications Industry Association, a trade group that represents the mobile ad industry.
“We are seeing more devices and devices are being used for marketing, especially in emerging markets like China and India,” McAllisters said.
“Mobile advertising will be growing in all of these countries, especially China,” he added.
“I think it’s going to continue to grow, but it will be more on the mobile side.”
McAllisters believes that the U, U.K., Canada and other countries that have had large mobile ad campaigns will benefit from increased advertising spending by advertisers.
“These countries will see increased growth in mobile advertising, as consumers get used to it,” McAlister said.
Mobile ad spending will also drive the growth of other revenue streams.
The report projects that mobile ad revenue will increase by 30% to $2.6 billion by 2020, and by 40% to about $2 billion by 2025.
McAllis said that as more consumers and businesses use mobile devices for work, shopping and entertainment, that will also lead to increased revenue for advertisers.