Are You Ready for the Great Desktop Ad Spend Decline?

Great news for digital marketing professionals: the competitive landscape for desktop ads is likely to thin in 2014.

The bad news: a whole lot of people are unprepared.

eMarketer published a report last week highlighting the trend of desktop & mobile ad spend, with actual figures for 2012 and 2013, and projections for now until 2018. If their projections are correct, traditional digital ad spend decline this year could reach $1.4 billion, while mobile advertising will continue to rise, at a rate of 83% over last year’s spend.

For years, analysts & pundits have predicted the next 365 days will be “the year of mobile”. Most of us have sat back and watched, year after year, this not exactly come to fruition. Sure, mobile ad dollars have increased by leaps & bounds compared to desktop over the past several years, but there hasn’t quite been that “a ha!” moment to signal a full-on takeover of mobile devices.

Until last Black Friday, that is.

IBM Analytics estimated a whopping 80% of the total mobile sales on Black Friday came from iOS devices. Better still, nearly 40% of all purchases made that day came from smartphones.

Retail advertisers that took advantage of mobile ads last Black Friday– kudos. You probably won in sales last year. For those that didn’t, this year’s your chance.

eMarketer’s data on ad spend decline for desktops this year highlights an essential need for all digital marketing advertisers– get in the mobile game. Now. Search, display, social media….it’s all gone the way of the handheld device.

The great news for paid search is that CPCs on Google for mobile ads is still relatively low, with less competition and increasing opportunity to capture target audiences. Some of Google’s newer SEM features, such as Product Listing Ads (PLAs), along with old favorites like click-t0-call (Call Extensions), provide a competitive advantage to PPC marketers who have embraced the mobile ad space.

Below are the 2012-13 and projections for through 2018 provided by eMarketer. What are you doing to prepare your advertisers for the mobile push?

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