Final answer:
Mobile advertising is the dominant type of digital advertising, surpassing traditional forms like radio and print, as indicated by a substantial increase in associated ad spending. It significantly impacts monopolistic competition by enabling brand differentiation and loyalty.
Step-by-step explanation:
The question seeks to determine which type of advertising dominates all forms of digital advertising. With technological advancements, the primary format of advertising that has taken precedence, especially in the digital realm, is mobile advertising.
According to eMarketer.com, mobile advertising has shown significant growth and has been predicted to surpass other forms like radio, magazines, and newspapers. In 2014, the U.S. economy invested approximately $180.12 billion in advertising, with television still commanding a major share of these expenditures. However, the rise of mobile devices has opened new avenues for advertisers, indicating a shift towards digital advertising and, more specifically, mobile-based campaigns. These trends suggest that companies are increasingly recognizing the importance of mobile advertising in reaching their target audiences, as these devices are often used for communication, entertainment, and accessing information, making them a fertile ground for advertisements.
Advertising influences monopolistic competition by enabling businesses to differentiate their products and establish a brand image, which can attract customers and foster brand loyalty. This is further demonstrated through multifaceted promotional strategies, as depicted in Naomi Klein's work, which are utilized to ensure consumers receive the same message across diverse platforms. Hence, the impact of advertising in monopolistic competition is profound as it helps companies to stand out in a market with many competitors offering similar products, by enhancing their visibility and appeal.