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36% of New Ad Dollars to go Mobile by 2016

When PPC advertising was first experiencing its rapid growth, it came largely at the expense of traditional ad options like magazines, newspapers, radio and television.  Businesses would take a portion of their overall ad dollars, and redirect them to Google Adwords or other digital advertising options.  This is not really surprising, and while the traditional ad companies didn’t like it, it worked out by really helping to grow the world of Internet Marketing.

The latest growth area for marketing is mobile advertising.  Ads that are targeted specifically to mobile phones and tablets is growing extremely quickly.  Mobile ads give marketers a lot of very precise options for targeting their customers based on physical location and much more.

ZenithOptimedia recently released a new forecast into the advertising world, and found something that is quite odd.  While mobile marketing is on path to keep growing at a rapid pace, it is not really cutting into other marketing budgets.  Instead, it is just taking a much larger piece of the new ad dollars which are being spent.  Between now and 2016, it is expected that there will be about $90 billion in new advertising dollars spent by brands.  Mobile marketing is expected to get about 36% of that.

This is in addition to the already significant market share that mobile marketing has grown over the past few years.  The forecast suggests that by 2016, mobile advertising will overtake outdoor advertising ($40 Billion) cinema ads ($34 billion) and leapfrogging radio ads ($37 Billion), with a total of $45 Billion spent on mobile marketing alone.

This is all based on the fact that the global ad market for 2013 will be about $500 Billion, and will grow at an expected 5.3% in 2013, and 6% in the following two years.  This rapid growth in total marketing dollars will greatly benefit just about all advertising industries, but mobile, television and internet ads most of all.

The report says that television ads will grab 34% of the new ad dollars, and PC/Laptop marketing will enjoy a 25% jump.

However it all plays out, this is good news for marketers who use mobile or PPC ad campaigns to monetize their sites in the future.

What do you think about these numbers?  Do you think they are accurate, or will the growth be different than the zenithoptimedia forecasts?  Please, comment below.

Pesach Lattin
Pesach Lattin
Pesach "Pace" Lattin is one of the top experts in interactive advertising, affiliate marketing. Pesach Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.

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