Explosive Growth In Mobile Advertising

This chart compares the share of time Americans spend with selected media to the respective medium’s share of advertising expenditure, revealing that things may get worse for print publishers.

Over the past decade, as consumers and advertisers turned to digital media, U.S. print publishers have suffered a precipitous decline of advertising revenues. Newspaper ad spending in the United States peaked in 2000 and has since dropped more than 70% to a 50-year low considering inflation. Magazines have suffered a like fate and, according to an analysis by Macquarie Capital, things could get even worse for print publishers.

Comparing the share of time spent with selected media to the respective medium’s share of advertising expenditure reveals that print advertising revenues could drop 70% more, if proportionate to the time consumers spent with print media. Normally, Americans only spend 4.6% of their media time reading newspapers or magazines, yet print still accounts for almost 20% of total media ad spending.

The opposite holds true for mobile: Americans spend 19.9% of their media time on mobile devices, yet mobile advertising only accounts for 4.3% of total ad spend.

If the numbers are any indication for the future growth of advertising mediums, mobile advertising is about to take off. For newspapers and magazines however, the worst is likely yet to come. All this leaves print publishers fighting for survival.