A surge in mobile devices, combined with the popularity of social media networks, are key factors fueling greater online ad revenue opportunities in 2016.
Internet advertising revenues continue to skyrocket in the United States –– totaling $32.7 billion for the first six months of 2016, according to The Interactive Advertising Bureau’s (IAB) latest revenue report, conducted by PricewaterhouseCoopers (PwC).
An annual undertaking initiated by the Interactive Advertising Bureau (IAB) in 1996, the “Internet Advertising Revenue Report” has long served as a benchmark for measuring year-on-year growth of online advertising revenue. Among the report’s key takeaways for 2016, a higher surge in mobile devices, combined with the popularity of social media networks, were chiefly responsible for driving greater ad revenue opportunities than seen in the previous year.
“These half-year revenues are a testament to the role of digital screens—especially mobile screens—in consumers’ increasingly connected lives,” remarked IAB President and CEO, Randall Rothenberg. “Marketers and brands clearly recognize the innate power of digital to offer immersive experiences and secure real-time engagement.”
Some key takeaways:
- Internet advertising revenues totaled $32.7B, which is an increase of 19.1% over HY 2015.
- The top 10 ad-selling companies claimed 74% of total revenues in Q2 2016, which is a slight increase over Q2 2015 (72%).
- Desktop search revenue ($8.9B, 27% of total revenue) showed a decrease of 12% compared to HY 2015 ($10.1B, 37%), and desktop display revenue ($6.3B, 19%) declined by 7% compared to HY 2015 ($6.7B, 25%).
- Mobile revenue surged by 89% from $8.2B (30%) in HY 2015 to $15.5B (47%) in HY 2016.
- For the first time, mobile became the leading ad format (47% of total revenues, compared to 30% in HY 2015), followed by search, banner, digital video, classifieds, lead generation, and rich media.
- While digital video revenues for both mobile and desktop rose to $3.9B in HY 2016 (up 51%) from $2.6B in HY 2015), digital video on smartphones and tablets reached $1.6B in HY 2016 – an impressive climb of 178% from HY 2015.
- Social media revenue grew to $7.0B, a rise of 57% from HY 2015. (NOTE: Given the popularity of social usage on mobile, social’s expansion has been a major contributor to the growth of mobile.)
To access the full report, click here.