Internet Ad Revenues at $20.1 Billion Hit Historic High for Half-Year 2013, up 18% over Same Time in 2012, According to IAB

NEW YORK – Internet ad revenues surged to a landmark $20.1 billion, according to the IAB Internet Advertising Revenue Report released by the Interactive Advertising Bureau (IAB) and prepared by PwC US. This represents an 18 percent increase over last year’s first-half ad revenues of $17 billion.

“And, in response, marketers are turning to those same interactive arenas just as quickly.”

Maintaining the trend, second quarter 2013 internet ad revenues also saw an 18 percent year-over-year increase, reaching $10.3 billion, up from $8.7 billion in Q2 2012.

Report highlights include:

• Mobile revenues soared to $3 billion in the first half of 2013, representing triple-digit growth at 145 percent, from $1.2 billion in the same period last year
• Digital video, a component of display-related advertising, took in $1.3 billion in revenue during the first six months of 2013, an uptick of 24 percent over the first half of 2012 at $1.1 billion
• Search revenues in the first half of 2013 totaled $8.7 billion, up 7 percent from $8.1 billion in the first half of 2012
• Display-related advertising revenues in the first half of 2013 totaled $6.1 billion, accounting for 30 percent of revenues in the time period, up 9 percent from $5.6 billion in the first half of 2012
• The top three advertising verticals accounted for 46 percent of advertising revenue, including Retail at 20 percent, Financial Services at 14 percent and Automotive at 12 percent

“Digital has steadily increased its ability to captivate consumers and then capture the marketing dollars that follow,” said Randall Rothenberg, President and CEO, IAB. “Mobile advertising’s breakneck growth is evidence that marketers are recognizing the tremendous power of smaller screens. Digital video is also on a positive trajectory, delivering avid viewership and strong brand-building opportunities.”

“This report not only confirms that brands are making a greater commitment to interactive, but also points to the fact that mobile and digital video are being identified as integral elements of the marketing mix,” said David Silverman, a partner at PwC US. “Internet advertising’s ability to impact and engage is evident across digital screens, whether big or small.”

“Consumers are embracing new screens, new content and transforming how they shop, communicate and consume content at an accelerated clip,” said Sherrill Mane, Senior Vice President, Research, Analytics and Measurement, IAB. “And, in response, marketers are turning to those same interactive arenas just as quickly.”

Annual Figures

The following chart highlights half-year internet ad revenue since the IAB began measurements in 1996; dollar figures are rounded.

Ad Category Breakouts (in millions)

Revenue Pricing Models (in millions)

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) is comprised of more than 500 leading media and technology companies that are responsible for selling 86% of online advertising in the United States. On behalf of its members, the IAB is dedicated to the growth of the interactive advertising marketplace, of interactive’s share of total marketing spend, and of its members’ share of total marketing spend. The IAB educates marketers, agencies, media companies and the wider business community about the value of interactive advertising. Working with its member companies, the IAB evaluates and recommends standards and practices and fields critical research on interactive advertising. Founded in 1996, the IAB is headquartered in New York City with a Public Policy office in Washington, D.C. For more information, please visit iab.net.

About PwC US

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