advertising
Google’s revenue from search ads on U.S. computers fell for the first time last year and will decline another 7% this year, according to a new report, but overall U.S. advertising revenue will continue to rise due to the rapid growth of the mobile ad market.
The report by research firm eMarketer underscores how dramatically the rise of smartphones and tablets is reshaping Google’s business.
After several false starts, mobile advertising has now truly taken off and is forecast to account for 37% of all growth in global ad expenditure this year, and 31% in 2014, according to a recent report by ZenithOptimedia.
Mobile advertising (defined in the report as internet ads delivered to smartphones and tablets, whatever their format) is still relatively small—with a total spend of $14.3 billion worldwide this year, or 2.8% of total ad expenditure.
However, it is growing extremely rapidly: 77% growth in 2013, followed by 56% in 2014 and 48% in 2015, ZenithOptimedia forecasts. By 2015, mobile ad spend is expected to total $33.1 billion and to account for 6% of total ad expenditure.