The Interactive Advertising Bureau (IAB) announced that digital advertising revenues in the U.S. for the first half of 2016 reached an all-time high, scaling to $32.7 billion, according to the latest IAB Internet Advertising Revenue Report, released by the industry trade group and prepared by PwC US—representing a 19-percent increase over last year’s then record-setting half-year revenues of $27.5 billion.
In step with that accelerated growth, revenue from the second quarter of 2016 reached $16.9 billion, an 18 percent increase over the $14.3 billion from the same time period last year.
“These half-year revenues are a testament to the role of digital screens—especially mobile screens—in consumers’ increasingly connected lives,” said Randall Rothenberg, president and CEO of IAB, in a news release. “Marketers and brands clearly recognize the innate power of digital to offer immersive experiences and secure real-time engagement.”
Other key highlights from the report include:
- Mobile revenue saw the largest year-over-year change, climbing to $15.5 billion, up 89% from $8.2 billion in HY 2015, representing 47% of total internet advertising revenue
- Taking a deeper dive into mobile, video on smartphones and tablets saw strong triple-digit growth, reaching $1.6 billion in HY 2016, an impressive 178% rise from HY 2015
- Mobile search took a significant uptick, realizing $7.4 billion in HY 2016, a 105% increase compared to $3.6 billion in HY 2015
- Total digital video, including mobile and desktop, rose to $3.9 billion in HY 2016, up 51% from $2.6 billion in HY 2015
- Total search, including mobile and desktop, accounts for half of all internet ad revenue, and hit $16.3 billion in HY 2016, a 19% hike over the $13.7 billion generated in HY 2015
- Total social media revenues, including mobile and desktop, surged to $7 billion in HY 2016, a 57% rise compared to $4.4 billion in HY 2015
- Of the sector verticals measured, the top three continue to amass nearly half of all ad spend (46%)—retail (21%), financial services (13%), and automotive (12%)
“These numbers demonstrate the growing importance of mobile, showing us the increasing demand for digital video and search, available anytime, anywhere, in the palm of your hand,” said David Silverman, a partner at PwC US.
“Consumers’ appetite to enjoy media—in particular video and social media—on smartphones and tablets provides marketers with the opportunity to connect and interact with their customers while they are on the go, in a very personal environment,” said David Doty, executive vice president and CMO of IAB, in the release.
The following chart highlights half-year internet ad revenue since IAB began measuring it in 1996; dollar figures are rounded.
| Historical Half Year Revenue Growth (in millions) | |||||||||||||||||||
| Year | Revenue | % Growth | |||||||||||||||||
| HY 16 | $ | 32,739 | 19 | % | |||||||||||||||
| HY 15 | $ | 27,481 | 19 | % | |||||||||||||||
| HY 14 | $ | 23,091 | 15 | % | |||||||||||||||
| HY 13 | $ | 20,066 | 18 | % | |||||||||||||||
| HY 12 | $ | 17,028 | 14 | % | |||||||||||||||
| HY 11 | $ | 14,941 | 23 | % | |||||||||||||||
| HY 10 | $ | 12,127 | 11 | % | |||||||||||||||
| HY 09 | $ | 10,900 | -5 | % | |||||||||||||||
| HY 08 | $ | 11,510 | 15 | % | |||||||||||||||
| HY 07 | $ | 9,993 | 26 | % | |||||||||||||||
| HY 06 | $ | 7,909 | 37 | % | |||||||||||||||
| HY 05 | $ | 5,787 | 26 | % | |||||||||||||||
| HY 04 | $ | 4,599 | 40 | % | |||||||||||||||
| HY 03 | $ | 3,292 | 11 | % | |||||||||||||||
| HY 02 | $ | 2,978 | -20 | % | |||||||||||||||
| HY 01* | $ | 3,720 | -7 | % | |||||||||||||||
| HY 00* | $ | 4,013 | 147 | % | |||||||||||||||
| HY 99 | $ | 1,627 | 110 | % | |||||||||||||||
| HY 98 | $ | 774 | 125 | % | |||||||||||||||
| HY 97 | $ | 344 | 320 | % | |||||||||||||||
| HY 96 | $ | 82 | |||||||||||||||||
| Total | $ | 215,001 | |||||||||||||||||
| Comparison of 2015 and 2016 Data (in millions) | |||||||||||||||||||
| Revenue (Ad Formats) | Half Year | ||||||||||||||||||
| Half Year 2016 |
Half Year 2015 |
% Change
HY16/HY15 |
Difference
HY16-HY15 |
||||||||||||||||
| $ | % | $ | % | ||||||||||||||||
| Search | 8,895 | 27 | % | 10,051 | 37 | % | -12 | % | (1,156 | ) | |||||||||
| Classifieds and Directories | 1,065 | 3 | % | 1,490 | 5 | % | -29 | % | (425 | ) | |||||||||
| Lead Generation | 947 | 3 | % | 931 | 3 | % | 2 | % | 16 | ||||||||||
| E-mail – (reclassed into RM – now audio) | |||||||||||||||||||
| Mobile | 15,518 | 47 | % | 8,230 | 30 | % | 89 | % | 7,288 | ||||||||||
| Display-related | |||||||||||||||||||
| Digital Video Commercials | 2,252 | 7 | % | 1,991 | 7 | % | 13 | % | 260 | ||||||||||
| Display | 3,385 | 10 | % | 3,751 | 14 | % | -10 | % | (366 | ) | |||||||||
| Rich media | 491 | 1 | % | 686 | 2 | % | -28 | % | (195 | ) | |||||||||
| Sponsorships | 186 | 1 | % | 350 | 1 | % | -47 | % | (164 | ) | |||||||||
| Total Display-Related | 6,314 | 19 | % | 6,779 | 25 | % | -7 | % | (465 | ) | |||||||||
| Total | 32,739 | 100 | % | 27,481 | 100 | % | 19 | % | 5,258 | ||||||||||
| Revenue (Mobile Format Breakout) | |||||||||||||||||||
| Search | 7,431 | 48 | % | 3,628 | 44 | % | 105 | % | 3,803 | ||||||||||
| Display-Related | |||||||||||||||||||
| Display Banner / Rich Media / Sponsorship | 6,004 | 39 | % | 3,714 | 45 | % | 62 | % | 2,290 | ||||||||||
| Display Digital Video | 1,628 | 10 | % | 585 | 7 | % | 178 | % | 1,043 | ||||||||||
| Total Display-Related | 7,632 | 49 | % | 4,299 | 52 | % | 78 | % | 3,333 | ||||||||||
| Other | 455 | 3 | % | 303 | 4 | % | 50 | % | 152 | ||||||||||
| Total | 15,518 | 100 | % | 8,230 | 100 | % | 89 | % | 7,288 | ||||||||||
| Revenue (Mobile and Display Breakout) | |||||||||||||||||||
| Search | 16,325 | 50 | % | 13,679 | 50 | % | 19 | % | 2,647 | ||||||||||
| Display-Related | |||||||||||||||||||
| Display Banner / Rich Media / Sponsorships | 10,066 | 31 | % | 8,501 | 31 | % | 18 | % | 1,565 | ||||||||||
| Display Digital Video | 3,880 | 12 | % | 2,577 | 9 | % | 51 | % | 1,303 | ||||||||||
| Total Display-Related | 13,946 | 43 | % | 11,078 | 40 | % | 26 | % | 2,868 | ||||||||||
| Other | 2,467 | 8 | % | 2,724 | 10 | % | -9 | % | (257 | ) | |||||||||
| Total | 32,739 | 100 | % | 27,481 | 100 | % | 19 | % | 5,258 | ||||||||||
|
Revenue (Pricing Models) |
|||||||
| Half Year 2016 | Half Year 2015 | ||||||
| Impression-based | 11,112 | 34 | % | 8,901 | 32 | % | |
| Performance-based | 21,158 | 65 | % | 18,098 | 66 | % | |
| Hybrid | 469 | 1 | % | 481 | 2 | % | |
Read the complete report here.
IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PwC. The results are considered a reasonable measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertisements on the internet.
The survey includes data concerning online advertising revenues from web sites, commercial online services, free email providers, and all other companies selling online advertising. The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first and third quarters. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information.
Source: Business Wire; edited by Richard Carufel
