Marin Software: Mobile Ad Budgets Will Overtake Desktop Ad Budgets by the End of 2015

Due to its increasing popularity, mobile continues to be desktop’s top contender not only in the social usage scene, but most significantly, in online advertising as well. While advertisers great and small recognize the importance of mobile advertising for lead nurturing and conversions, did you know that mobile advertising will soon capture the majority of digital ad spend?

Mobile advertising is set to surpass desktop advertising in 2016, according to a report by Marin Software (@MarinSoftware). The benchmark report, Mobile Advertising Around the Globe: 2015 Annual Report, concludes that advertisers will spend more on mobile ads than they do on desktop ads by year’s end, driven by the ever-growing consumer adoption of mobile devices and a surge in mobile ad clicks and conversions.

eMarketer (@eMarketer) previously predicted that the number of tablet and smartphone users will hit 1.06 billion and 2.04 billion respectively by the end of 2015. Advertisers have noticed the increasing demand for mobile, and so, in 2014, mobile advertising spend versus desktop hit an “all-time high of 41% of all US digital advertising spend.”

The fact that most consumers today do their research about products and services using their mobile devices before making a purchase also reinforces these findings. Forty percent of all online adults start an activity using one device, and end with another; though most of the time, desktops are used for conversions.

“The rise of mobile is nothing short of astounding, but it’s important to remember most people jump between desktop and mobile several times when researching and buying products,” Matt Ackley, CMO of Marin Software, stated. “Our new data reveals that advertisers clearly need to adopt strategies to reach consumers across multiple channels, using tools to accurately track attribution for mobile ads. Clicks on mobile ads don’t always lead to direct conversions, but often influence desktop or in-store purchases. ”

Figure 1 (Source: Marin Software)

More and more shoppers are spending their digital viewing time on mobile devices. According to the latest statistics from eMarketer, 52% of all time spent on digital media can be attributed to mobile. With the aim of reaching such a large audience, advertisers are shifting their budget to focus on smartphones and tablets.

As shown in Figure 1 above, global mobile ad spend is expected to grow immensely from just $31 billion in 2014, to $46 billion in 2015. By 2016, the total advertising budget targeted at mobile devices is predicted to reach over $60 billion.

The data released by Marin Software represents all major industries, as well as 13 countries and regions, including the U.S., the U.K., China, Canada, and Brazil. More information and insights can be found in the full report.

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