eMarketer 2015 Ad Spend Projections
Where are you putting your advertising dollars these days?
Overall, we are watching ad budgets shifting from desktop to mobile. There are many companies that still haven’t made the leap, but it will be interesting to see which of them are going to adapt in the coming year. For those companies that have already transitioned to mobile, it’s important to monitor spending trends.
Last week eMarketer released their latest forecasts on mobile ad spending. Marketers are switching over to mobile. It’s estimated that 50% of advertisers are putting their money into mobile ads this year, which will make 2015 a major tipping point for the industry. There is a range of options available to them from mobile web, mobile search ads, in-app ads and more. The biggest revelation from eMarketer was regarding install ad spend:
“eMarketer’s latest mobile ad spending forecast also includes mobile app install ads for the first time. We estimate that US app install ad spending totaled $1.67 billion in 2014, or 8.7% of all mobile ad spend, and expect this to reach $3.00 billion this year. That figure is an 80.0% year-over-year increase, yet still only accounts for 10.4% of all mobile ad dollars.”
This is the first time that eMarketer has released statistics on install ad spend and it’s an important baseline for the industry. As said earlier, 2015 will a turning point year and there is no doubt that these numbers will only increase as a result, especially given two major announcements from Google.
The search giant recently revealed that they will be piloting app ads in the Google Play store. This initiative will certainly influence how marketers earmark their advertising budget. How could it not when they can vie for the opportunity to have their app appear first in app store purchases? It’s a much-needed solution for marketers looking for a way for their app to be featured more prominently in the app store.
Google Play ads level the playing field in the app store by giving Indy developers an opportunity to stand out and push their apps. These ads will ultimately increase brand awareness in the app store, the number one place for app discoverability. More than that, it will impact installs and developers’ bottom line.
The other interesting step that Google took was to create a new search algorithm for mobile. This is going to change the way every company does SEO. Sites will be ranked not only by content and keywords, but also by how mobile-friendly they are when searched on mobile. That means no more sites with a terrible user interface and a shift to longer scrolling sites, ultimately encouraging responsive design.
But how will it impact the ad landscape when eMarketer reports that mobile search is negligible? We can probably anticipate an increase in mobile searches now that sites will be required to be mobile-friendly. This will ultimately drive the market for mobile search ads. It’s as simple as that. Many tech commentators have said that Google is not as strong in mobile as Facebook, and it is now trying to take back control of the mobile ad conversation.
The other big question is how will this impact the percentage of install ad spend, now at 10.4% of mobile spend. Will these major shifts be enough to convince developers large and small to invest in them? The mobile industry’s pace continues to quicken, and there’s no telling what can happen. We’ll just have to sit back and wait.