US mobile advertising revenue grew 76% in 2014

Peter Keung | April 27, 2015

Mobile Advertising

The Internet Advertising Revenue Report by the Interactive Advertising Bureau (IAB) for 2014 shows that mobile advertising in the US generated $12.5 billion, a 76% increase from 2013. This makes it the second largest ad format following search, accounting for 25% of the overall $49.5 billion ad revenue.
Mobile annual advertising revenue has grown rapidly over the last few years
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Broken down further, display ads (49%) were the most successful on mobile devices, followed closely by search (48%) and other formats (4%). Overall search spending amounted to 62% when combined.
Mobile advertising was the second largest format during 2014, following search
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Randall Rothenberg, President and CEO, IAB, comments:

“Marketers clearly recognize that consumers are leading mobile-first lives and are investing their ad dollars accordingly. The news of digital video’s double-digit growth is also no surprise. Brands and agencies are clamoring to get into the upcoming Digital Content NewFronts, where they will experience the latest in storytelling in sight, sound and motion.”

Facebook’s financials are proof of the growth of mobile advertising, with 87% of its monthly active users coming through mobile devices, making up 1.25 billion of its 1.44 billion user base. Mobile ad revenue amounted to 73% of Facebook’s total spending during Q1 2015. In addition, user retention has grown steadily, which is clearly due to the success of mobile devices and a growing number of people turning to mobile devices as their sole means of accessing the internet.
Recognising the power of mobile devices, David Silverman, Partner, PwC US, which prepared the study, adds:

“High double-digit growth in mobile advertising is a reflection of the continued shift in consumer behavior away from desktop and towards mobile devices. A prominent rise in social, a significant mobile activity, is driving growth in advertising revenue as consumers spend more time connected.”

IAB findings show that marketers can benefit from a more dedicated mobile strategy.

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