Forrester: Mobile will drive 86% of digital ad growth through 2022
- Mobile will contribute 86% of the growth in overall digital ad spending in the U.S. between 2017 and 2022, according to a Forrester report shared with Mobile Marketer. This comes as mobile ad spending in the U.S. is set to grow 14.7% in the same time period, compared to 3.9% for desktop.
- Search and social on mobile devices are predicted to be key growth drivers, making up 81% of additional mobile ad dollars during the five-year period.
- Spending on mobile display ads will have the fastest growth rate of 16.7% through 2022 as video consumption on mobile devices becomes increasingly popular. The smartphone display cost-per-click (CPC) is one-third of desktop display CPC, suggesting that mobile display ad prices have room to grow, Forrester said.
Forrester's study points to several figures that could shape mobile marketing strategies for the next several years. The average U.S. consumer checks their smartphone 47 times a day, giving marketers a chance to reach audiences dozens of times a week as people check social media, search online or watch videos on social media or streaming sites. The smartphone viewing experience has become more appealing as the average U.S. phone screen size continues to grow and devices become increasingly sophisticated.
Retailers are beginning to realize the importance of mobile, with 48% saying the inclusion of mobile resulted in a significant positive effect on their business, per a separate Forrester report. Smartphone users conducted $100 billion of online retail transactions in the U.S. in 2017, while mobile devices helped to influence $1.1 trillion in offline retail sales. Even if a mobile search ad doesn't lead the customer to an immediate transaction, it helps to form a first impression that can favorably drive a future purchase decision on another device or at a physical location.
This comes as social media is increasingly prevalent in Americans' daily lives, including influencing how they make purchasing decisions. Fifty-one percent of U.S. online adults say they considered social media or blogs to be among the most influential sources in helping with their decision on a recent purchase — below Amazon at 76% and traditional search engines at 56%.
Because social media platforms are typically hosted as apps, mobile social advertising plays an important role in influencing retail sales and affecting users' brand perceptions. Social advertising's goal can be to either promote brand awareness or highlight specific products. Because consumers learn about products and services from friends and influencers on social media, they may be open to seeing ads that strike a similar tone, such as a promoted post from a key influencer, per Forrester.
- Mobile Marketer Forrester: 74% of marketers plan to boost mobile ad budgets in 2018
- Mobile Marketer Study: Mobile ads to exceed 30% market share in 2020