Online Poised To Break 25% Budget Milestone, Mobile Fueling Half Its Growth
Online advertising will pass a symbolic milestone this year, becoming one out of every four dollars spent by U.S. advertisers, according to new projections from the equity research team at J.P. Morgan. The growth, writes Internet sector analyst Doug Anmuth, is being fueled by advertisers shifting budgets from analogue media to follow consumer time spent with digital media, especially Internet-connected mobile devices, as well as the continuing momentum of social media platforms like Facebook.
“As consumer behavior and time spent online rapidly shifts towards mobile, we expect advertising dollars to follow,” Anmuth writes in a report released to investors early this morning, adding: “We are projecting Internet advertising in the U.S. to grow to $43.5 billion in 2013.”
That tally, which represents a 17.4% gain over 2012 online ad spending levels, puts online media at 25% of all U.S. ad budgets.
Anmuth estimates about half of that growth will be coming from mobile Web ad spending, and without the mobile stimulus, online ad spending would grow only about 10% from 2012.
Aside from mobile, Anmuth says social media has been a “key driver of brand advertiser spend due to its large reach and highly targetable user base.”
The report, which also assigns an “overweight” recommendation on Facebook’s stock, cites a number of key moves by the social network to capitalize on its massive user reach, including a variety of new advertising formats, as well as the biddable media Facebook Exchange. Much of Facebook’s 2013 growth, however, is projected to come from its rapid expansion into mobile.
“Facebook represented 40% of the growth in U.S. desktop display,” Anmuth projects, adding: ”However, in 2013, we estimate Facebook’s total desktop revenues to decline 4% due to the shift to mobile.”
Recent Online Media Daily Articles
-
Google+ Needs Android To Climb Out Of Experimental Phase May 20, 9:24 p.m.
Marketers continue to view Google+ as a fledgling network requiring experimentation, although the company released a ... -
AOL, Support.Com Settle Scareware Lawsuit For $8.5 Million May 20, 5:20 p.m.
Web company AOL and software vendor Support.com will pay $8.5 million to settle a lawsuit brought ... -
Gmail Hangouts Disable Google Voice May 20, 3:23 p.m.
Google's new version of Hangouts for Gmail eliminates Google Voice features. The move is frustrating heavy ... -
Digital Boost: Ziff Davis Acquires NetShelter May 20, 3:19 p.m.
Ziff Davis on Monday announced the acquisition of content network NetShelter from ad platform inPowered. Financial ... -
LikeableAds.com Launches, With Focus On Social Media Ads May 20, 3:04 p.m.
To keep up with growing demand from Madison Avenue, the social marketing consultants at Likeable Media ... -
Yahoo To Ramp 'Native' Ads On Tumblr May 20, 1:37 p.m.
With its $1.1 billion acquisition of Tumblr, Yahoo on Monday made clear that it plans to ... -
Gigya Improves Marketing, Adds 21 Social, Tech Partners May 20, 9:15 a.m.
Social services startup Gigya on Monday is expected to announce the addition of 21 social and ... -
Health/Wellness Shop Diversifies Into Happiness, Launches Platform To Fuel It May 20, 9:06 a.m.
The CementBloc, a spunky New York-based agency specializing in health and wellness marketing, is diversifying into ... -
Yahoo To Buy Tumblr For $1.1 Billion May 19, 7:26 p.m.
The Yahoo board has agreed to acquire popular blogging site Tumblr for $1.1 billion in cash, ... -
Weather.com Develops Real-Time Data Ad Targeting May 17, 5:12 p.m.
Weather.com has begun using audience segmentation data from Lotame to develop real-time targeting services based on ...
Be the first to comment on "Online Poised To Break 25% Budget Milestone, Mobile Fueling Half Its Growth"
Leave a Comment