Friday, April 18, 2014

U.S. Interactive Ad Revenues Reach All-Time High

According to a recent report, U.S. interactive advertising revenues in 2013 grew 17 percent over the previous year for an all-time high of US $42.8 billion, surpassing broadcast television advertising (US $40.1 billion) for the first time. Mobile advertising revenues achieved triple-digit growth (more than 110 percent) year-over-year to reach US $7.1 billion. Mobile accounted for 17 percent of 2013 revenues, compared to 9 percent in 2012. Retail advertisers continue to represent the largest category of internet ad spending, responsible for 21 percent in 2013, followed by financial services and closely trailed by automotive which account for 13 and 12 percent of the year's revenues respectively.

That mobile ad revenues more than doubled in just one year is, we think, an astonishing statistic. At US $7.1 billion, the sheer size of the mobile piece of the U.S. interactive advertising pie stands as a challenge to any entity in the mobile space to pick up a piece of it, and the pie is anything but shrinking, so there should be opportunity for all. Much of the revenue now goes to internet search-based entities such as Google, as well as to the developers of the apps that feature ads. But considering the current amount of demand for mobile advertising and its rate of growth in the U.S. and doubtless in other, similarly developed markets, mobile operators should be working hard to find out how to take a piece of this business.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:

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