Study: $30 Billion+ Opportunity in Internet and Mobile Advertising
June 5, 2014 | Contributed by: Wesley Young
Although TV is still “king” when it comes to both consumer time spent and advertising spend, it is no longer immune to the disruptions being brought about by the Internet and mobile.
According to Mary Meeker’s 2014 Internet Trends Study, print (newspapers and magazines), radio and yes, even TV, are all down in the amount of time consumers spend on these outlets. Meanwhile, consumer time spent on Internet and mobile continues to grow rapidly.
As the chart above shows, advertising spend today is not aligned with current media consumption. For example, print represents 19% of total advertising spend, even though it receives just 5% of total time spent by consumers. On the flip side, mobile represents just 4% of total advertising spend, despite it receiving 20% of total time spent by consumers.
There are many other factors such as quality of leads and ROI that factor into the allocation of ad spend. Nevertheless, closing the gaps between Internet and mobile time spent and advertising spend represents a whopping $30B opportunity in the U.S. This presents local advertising companies with the chance to develop effective solutions in a rapidly growing market.
The study also highlights how more time spent on mobile devices is leading to a significant influx of consumer content. With the rise of more “uploadable/findable/sharable/real-time data” many new businesses are using crowdsourcing to help consumers “do old things in new ways.” For instance, hailing a cab, booking a hotel and even satellite radio are completely different experiences because of apps like Uber, Airbnb and Spotify.
The report also discusses societal trends emerging from the increasing amount of activity taking place on mobile devices. When it comes to photos alone, more than 1.8 billion are shared via mobile each day. What’s more, a staggering two-thirds of “digital universe” content is consumed and created by consumers.
Overall, the study highlights much of what we already know about the changing digital landscape: mobile device usage and adoption continues to grow and is changing the way we get things done. Additionally, the report notes how we are becoming a more visual society with social picture sharing platforms and online video becoming increasingly popular. What will be interesting to see is how local advertising agencies and companies bring traditional advertisers into these new forms of media.
Tags: 2014 Internet Trends Study, ad spend, advertising spend, Airbnb, consumer content sharing, internet, magazines, Mary Meeker, mobile, mobile search, newspapers, print, radio, ROI, Spotify, TV, Uber, video advertising