U.S. Online Spending Estimated At $46.5B In '13, Mobile Search Surges

Global online advertising spending increased 10.2% to $28 billion in the third quarter of 2103 from $25.4 billion in the year-earlier period.
 
Plus, quarterly ad spending growth in the U.S. was slightly ahead of that rate, rising 12.1% to $11.5 billion from $10.3 billion a year ago, per research firm IDC. Based on signs of an economic rebound in the last two quarters, IDC estimates the pace of spending increased to 13.4% in the fourth quarter, for a total of $13.2 billion. That would bring the U.S. total for 2013 to $46.5 billion.
 
With its latest update, IDC said it added coverage of Twitter and Hulu, while dropping Disney Interactive Group, a former client. Both had a digital ad market share of about 1.1%. We expect “Hulu's share to stagnate or even decline going forward, while we expect Twitter's share to increase, if slowly for now,” wrote analyst Karsten Weide.
 
U.S. online search advertising grew 6% to $4.9 billion from $4.6 billion, with Google’s market share declining by one percentage point to 55.6%. Microsoft added two points to reach 13.7%, while Yahoo remained flat at 6.1%. Twitter ads had about 0.7% of the segment.
 
On the display side, spending went up 8.2% to $3.3 billion from $3 billion a year ago. Google extended its lead by one point to 24.9%, followed by Yahoo with 9.1% and Facebook down a point to 8.2%. Hulu had a display share of 3.9%, down from 4.1% in the prior quarter.
 
U.S. mobile advertising, starting from a smaller base, grew much more quickly in the third quarter. Mobile search advertising surged 59% to $1.1 billion from $700 million a year ago. Mobile display was up 54.4% to $700 million from $500 million.
 
In addition to Twitter and Hulu, IDC bases its estimate of U.S. ad spending primarily on the total gross Internet ad revenue of eBay, Facebook, Google, IAC, Microsoft, Yahoo and YP. The top companies account for about 80% of all ad spending, with the long tail of sites contributing 20%

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