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Mobile Ad Spending Set to Beat TV in 2018

Posted by Contributors on April 29, 2018

When you start your day, do you hop on your phone in the morning and then switch to your desktop or laptop at work? What about when you leave at the end of the day? Do you check your phone again, or grab your tablet to unwind, depending how you commute home, of course -- before watching some TV later? Many follow a similar routine. As more consumers are on smartphones, tablets and streaming devices, global sales for TV ads are declining.

With digital ad expenditures surpassing that of TV, marketers are optimizing their digital strategies to counter the noticeable decline with traditional forms of advertising. Here's a little insight into the transition from TV to digital, and arguments for and against this transition.

The Growing Demand for Mobile

Not so long ago, if you wanted to watch a movie, shop or do your banking, you would use your desktop or laptop. Today, you can just conveniently reach for your phone or tablet. Consumers rely on their mobile devices so much that this year mobile ads will account for almost 70 percent of all digital advertising, according to eMarketer.

mobile-shopping-lady-cutAdditionally, mobile is projected to pass TV as the leading form of advertising with about a 34 percent share accounted for all U.S. ad spending, projected to increase to about 48 percent within two years -- as more people do daily banking and shopping on smartphones and tablets, advertisers are pouring more money into the increasingly growing mobile commerce arena. So this is good, right? If you're a marketer or brand interested in tracking conversions to optimize sales strategies and growth revenue streams, yes and no.

Optimizing Mobile: At What Cost?

With more and more websites redesigned to cater to customers on mobile screens, marketers and developers are making it easier for people to use smartphones and tablets, as if they were minicomputers, and make more purchases with said devices.

Because mobile display ads have bypassed larger screens, marketers who are developing effective ad strategies are at an advantage, on the one hand, whereas, mobile growth has grown three times faster than that of all media this year. But therein is the concern, as competition is heating up, with mobile ad prices increasing for brands that want prized mobile ad placement. On the other hand, with so much attention surrounding mobile ads, what about desktops? Are traditional ads a thing of the past?

Consumer Mobile Usage

If you break down actual consumer mobile usage, it varies. Consumer desktop usage is significant during the daytime, when people are working and on online, doing things like checking stock portfolios, social media or ordering lunch -- but tablet usage increases at night. Additionally, on nights and weekends consumers use mobile, according to comScore Global Digital Future in Focus. The daily impressions for each platform suggest that consumers are using multiple devices:

  • From 7 a.m.-10 a.m. consumers, are using smartphones
  • From 10 a.m.-5 p.m., consumers are on desktops
  • From 5 p.m.-8 p.m., consumers are on tablets
  • From 8 p.m.-12 a.m., consumers are using televisions

lady-mobile-shop-bench-cutThe implications are apparent. Consumers are on more mobile devices, but desktops shouldn't be neglected.

The Need for Strategic Responsive Ads

Whether you have a retail business like a fashion ecommerce company or other business, well-designed ad strategies can increase conversions and optimize revenue. For effective ad strategies:

  • Focus on designing responsive web designs.
  • Ensure screen dimensions are optimal for converting across mobile and desktops to reach the widest audience.
  • With AdWords and dayparting (peak visibility), focus on display media.



Mobile ad spending will gain momentum as more and more consumers are on smaller screens, making it an ideal time to use digital marketing and ecommerce software. If you haven't already, it's a good time to find an ecommerce solutions partner and get serious about an ecommerce strategy to optimize your ads across mobile.

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Topics: Advertising, Marketing, Mobile, Smart Home, Technology, Responsive, Digital marketing, Strategy

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