Posted June 12th 2013

Desktop Ad Spending To Peak In 2014

eMarketer predicts that desktop advertising will peak in 2014 on the heels of rapidly-rising mobile advertising. According to forecasts, nearly all desktop categories are expected to see flat or declining growth this year: search ads will grow by only 3%, and banner ads by just 1%. The exception is desktop video, which will expand by 35%; however, this growth pales in comparison to mobile video, predicted to grow by an even more impressive 112.4%. eMarketer predicts that mobile is expected to account for more than a third (36.4%) of digital ad spending by 2017. eMarketer adds that mobile is cannibalizing desktop ad spending faster than had been previously anticipated. The news should come as no surprise, especially given last week’s Pew report on the rapid rise of smartphone adoption.

Major tech companies have quickly shifted to align with the change. Facebook only launched mobile ads in 2012, but is expected to make nearly half of its ad revenue from mobile by 2015. Twitter will benefit even more from the shift to mobile; its mobile ads, also launched in 2012, is expected to make nearly two-thirds of its revenue from mobile. Meanwhile, Google is still expected to make the majority of its ad revenue on desktop thanks to search, and desktop video, thanks to YouTube.

Source: eMarketer, June 2013