According to the Interactive Advertising Bureau (IAB), mobile search advertising has hit a new all time high and is now more than half (51%) of all ad revenue spent in the digital realm. Overall, digital advertisements have hit an all-time high as well. Altogether $72.5 billion dollars have been spent on digital advertising in 2016.
Here are the important statistics we have gleaned from the report:
- Video revenue increased 145% to $4.2 billion
- Social media advertising increased 50% to $16.3 billion
- Retail, representing 21.3 percent of internet ad spend in 2016, Financial Services at 13.3 percent, and automotive at 12.5 percent, continue to have the largest category share, with Media (5.2%) picking up speed, up 13 percent over 2015
- Desktop search advertising was down 13% to $17.8 billion while mobile search advertising has increased 77% to $36.6 billion.
IAB 2016 Full Year Report
Comparison of 2016 and 2015 Data
(in millions)
Full Year
2015Full Year
2016% $ % $ Revenue (Ad Formats) Search 34.4% $20,481 24.5% $17,756 Classifieds and Directories 4.6% $2,757 3.2% $2,345 Lead Generation 2.9% $1,756 2.7% $1,989 Mobile 34.7% $20,677 50.5% $36,641 Display-related – Digital Video Commercials 7.1% $4,236 6.8% $4,898 – Ad banners / display ads 13.0% $7,745 10.2% $7,377 – Sponsorships 1.1% $649 0.6% $422 – Rich media 2.1% $1,251 1.5% $1,093 Total display-related 23.3% $13,881 19.0% $13,790 Revenue (Pricing Models) Impression-based 33.5% $19,942 34.6% $25,085 Performance-based 64.9% $38,644 64.0% $46,432 Hybrid 1.6% $965 1.4% $1,004 “Mobile, social, video, and programmatic trends combine to redefine the digital landscape, providing unprecedented access for advertisers to reach consumers,” said David Silverman, partner, PwC US. “Digital audio, generating $1.1 billion in 2016 speaks to the continued evolution of new formats that enable marketers to find audiences at home, behind their desks, or wherever they are.”
As we have reported in the past, there has been a shift in how users are connecting online. With an increase of users using mobile to connect, we expect ad budgets to adapt to the usage of their prospective customers as well as higher ad rates.
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