Smartphone use overtakes TV usage shockingly in recent years. Last year, a Nielsen study found that 18 to 24 year olds across America spent more time on their smartphones than watching TV. Users across older age groups still watched more TV.
Smartphones, tablets and online services will gradually change people’s media consumption habits until eventually, the idea of having to sit down in front of the TV at a fixed time to watch anything but live sports will be nothing but a distant memory. The growth of digital video services is “a key driver” in this change.
Hence advertisers are interested to spend money on mobile ads. And eMarketer recently reported that advertisers would spend more money on mobile ads than TV ads in 2018. The percentage would rise over the next four years.
eMarketer are expecting that this transition to bolster ad prices as demand outstrips supply. However it is great news for the Alphabet subsidiary Google and Facebook. As they dominate market for offering service in Internet ads.
Research firm Pivotal estimated the two companies accounted for 73% of all digital advertising in the U.S. That growth could hurt smaller digital ad players such as Twitter and Snap.
Google’s YouTube and Facebook’s Watch a new video platform the social network launched last August, will also likely pull more advertisers away from TV networks. The networks are fighting back with their own mobile apps, but they will face rising battle over the next few years.