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Mobile set to drive U.S. online ad spend beyond 25% of total ad budget

January 14th, 2013 by Lloyd Gofton

According to J.P. Morgan, online advertising will pass a key milestone during 2013, accounting for one out of every four dollars spent by U.S. advertisers, as they increasingly follow consumers online.

Internet sector analyst Doug Anmuth has highlighted the importance of Internet-connected mobile devices, as well as the continuing momentum of social media platforms as a key part of online’s growing influence.

Writing in a report released to investors last week, Anmuth confirmed: “As consumer behaviour and time spent online rapidly shifts towards mobile, we expect advertising dollars to follow. We are projecting Internet advertising in the U.S. to grow to $43.5 billion in 2013.”

This represents a 17.4% growth on 2012 online ad spending levels and puts online media at 25% of all U.S. ad budgets.

To underline the influence of mobile, Anmuth estimates about half of the projected growth will be coming from mobile web ad spending. Without the mobile stimulus, online ad spending would grow by roughly 10% from 2012.

The importance of online is nothing new, but it’s continued solid growth and our demand to be connected everywhere is impacting all forms of media, and dictating the development of the advertising that we consume.

Ad funds will always follow the consumer, and the consumer is staying connected, no matter where they are.

Full story here.

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