Mobile Jumps 76% Year-over-Year & Overtakes Banner Ads
Report Includes First-Ever Mobile Ad Format Breakdowns
NEW YORK – Internet ad revenues climbed to an historic first half-year high of $23.1 billion, according to the IAB Internet Advertising Revenue Report released by the Interactive Advertising Bureau (IAB) and prepared by PwC US. This marks a 15 percent rise over 2013’s first-half ad revenues of $20.1 billion.
“Consumers living online is no longer the exception – It is the rule”
Maintaining the positive trajectory, second quarter 2014 internet ad revenues rose to $11.7 billion, representing a 14 percent year-over-year increase, up from $10.3 billion in Q2 2013.
Highlights of the report include:
- Mobile revenues increased 76 percent to 5.3 billion at HY 2014, from the $3.0 billion (15% of total) reported at HY 2013, with the 2014 six month total consisting of $2.7 billion mobile search, $2.5 billion mobile display, and $103 million in other mobile formats
- Digital video, a component of display-related advertising, reached $1.5 billion, a 13 percent increase in revenue over the first half of 2013 at $1.3 billion
- Search revenues in the first half of 2014 hit $9.1 billion, up 4 percent from $8.7 billion in the first six months of 2013
- Display-related advertising revenues in the first half of 2014 totaled $6.5 billion, a 6 percent uptick from $6.1 billion in the first half of 2013, and accounted for 28 percent of digital advertising revenue overall
- Social media revenues, which includes advertising delivered on social platforms, including social networking and social gaming websites and apps, reached $2.9 billion in HY 2014, a double-digital hike of 58 percent over the same period in 2013, at $1.9 billion
- The top three advertising verticals continue to account for nearly half of advertising revenue (46%), including Retail at 21 percent, Financial Services at 13 percent and Automotive at 12 percent
“This report confirms the fact that brands are deepening their commitment to interactive advertising, and that mobile is seen as a crucial part of the marketing mix,” said Randall Rothenberg, President and CEO, IAB. “Moreover, with second half revenues traditionally surpassing those in the first half of the year, this milestone achievement is potentially a harbinger of even stronger digital ad revenues to come.”
“Mobile’s continued rise speaks to consumers’ increasing reliance on smartphones and tablets, whether on-the-go or at home,” said David Silverman, a partner at PwC US. “And, digital video too is seeing gains that reflect a new ‘viewing’ paradigm that is taking place on interactive screens, big and small.”
“Consumers living online is no longer the exception – It is the rule,” said Sherrill Mane, Senior Vice President, Research, Analytics and Measurement, IAB. “Digital screens have become vital tools at every juncture of the day. It is no surprise that brand dollars have followed this growing movement at a steady clip.”
The following chart highlights half-year internet ad revenue since the IAB began measurements in 1996; dollar figures are rounded.
|Year||Half Year Revenue||% Growth|
|Comparison of 2014 and 2013 Data|
|Revenue (Ad Formats)|
|Classifieds and Directories||6%||$1,291||6%||$1,307|
|-Digital Video Commercials||7%||$1,307||6%||$1,481|
|*The survey no longer captures Email as an advertising format (effective 2014).|
|Revenue (Pricing Models)|
IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PwC. The results are considered the most accurate 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.
A copy of the full report is available at: iab.net/AdRevenueReport.
About the IAB
The Interactive Advertising Bureau (IAB) empowers the media and marketing industries to thrive in the digital economy. It is comprised of more than 650 leading media and technology companies that are responsible for selling, distributing and optimizing digital advertising and marketing. Together, they account for 86 percent of online advertising in the United States. Working with its member companies, the IAB evaluates and recommends standards and practices and fields critical research on interactive advertising. The organization is committed to professional development, elevating the knowledge, skills, and expertise of individuals across the digital marketing industry. The IAB also educates marketers, agencies, media companies and the wider business community about the value of interactive advertising. Founded in 1996, the IAB is headquartered in New York City.
About PwC US
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