Pew Report Shows Positive Growth for Digital Advertising
The Pew Research Center recently released its 2015 report on the State of the News Media. According to the Pew study, digital platforms are grabbing more and more of consumers’ attention. Whether it is where advertising dollars go, how consumers find content, the importance of mobile or the power of social media advertising, the increasing power of digital is undeniable. With the ability to tailor a message, target an audience and measure results, digital continues to play a powerful role in the future of content consumption.
Below are a few stats from the report that we found interesting and useful:
- Consumers Go To Social For News: Nearly half of web-using adults get their political/government news from Facebook alone according to Pew’s research.
- Spending In Digital Continues to Trend Upward: According to Pew, $50.7 billion was spent on digital ads (including mobile) in 2014, up 18% from $43.1 billion in 2013. Digital advertising grew as a percentage of total media advertising across all platforms: 28% in 2014, up from 25% in 2013.
- Mobile Spending, Content Consumption Up: Pew reports that $19 billion was spent on mobile advertising in 2014, up 78% from 2013. Mobile ad spending increased by 78% and now accounts for 37% of all digital ad spending, up from 25% last year. For 10 of the top 50 digital news sites and their associated apps, mobile visitors spent more time per visit than desktop.
- Online Video Grows As Part of Media Mix: Video display ad spending is growing at a faster rate than any other display category according to Pew – up 56% in 2014 – and now accounts for more than a quarter (27%) of total display ad spending. That is up from 14% ($1.4 billion out of $9.9 billion) in 2010.
- Self-Serve Platforms Drive Majority of Ad Revenue: Pew reports that when it comes to overall digital advertising revenue, Google leads the pack again and accounts for 38% ($19.3 billion) of the marketplace. Pew writes that Facebook has become a stronger generator of overall digital advertising revenue over the past two years and pulls in 24% of all display ad revenue and 37% of mobile display. In 2014, Facebook increased its digital ad revenue 52% to $5 billion. Facebook continued to lead in mobile display ad revenue, generating more than one-third (37%) of all mobile display ad revenue in 2014. Facebook’s mobile display revenue grew 131% (from $1.5 billion to $3.5 billion) in 2014. The third-highest generator of mobile display ad revenue in 2014 (7% of the total), Twitter saw a 111% jump last year (from $0.3 billion to $0.7 billion). On both Facebook and Twitter, the percentage growth of mobile display advertising equaled the percentage decline of another more mature category: desktop display ads. When it comes to mobile display ad revenue, the top five companies – in this case, Facebook, Google, Twitter, Pandora and Apple (iAd) – took in nearly two-thirds (64%) of the total mobile media spend in 2014, or $6.4 billion out of $9.6 billion.