Spigot Inc Shares IAB Results: Digital Ad Spend Reaches Record Breaking Year

Home/Digital Advertising/Spigot Inc Shares IAB Results: Digital Ad Spend Reaches Record Breaking Year

Spigot Inc Shares IAB Results: Digital Ad Spend Reaches Record Breaking Year

Interactive Advertising Bureau (IAB) announced today that digital advertising revenues in the United States for the first half of 2017 surged to an all-time high of $40.1 billion, according to the latest IAB Internet Advertising Revenue Report released by the industry trade group and prepared by PwC US. This represents a 23 percent year-over-year rise from the $32.7 billion reported during the same timeframe in 2016.

“Now, anyone with a good idea and a credit card can capture the attention of their customers directly, and this in turn represents an enormous growth opportunity for both marketers and publishers alike to help make these connections.”

Mobile captured 54 percent of total digital ad revenues—maintaining its status as the web’s leading ad format. Advertisers spent $21.7 billion on mobile during the first six months of 2017, a 40 percent increase from $15.5 billion in half-year 2016 and far surpassing the $8.2 billion reported just two years ago in HY 2015.

In an addendum to the report, IAB analysis shows that of the roughly 9 million small and medium-sized businesses in the U.S., 75 percent or more have spent money on advertising. Of these, 80 percent have used self-service platforms and 15 percent have leveraged programmatic advertising. These findings point to significant ad spend going to publishers with these capabilities, and presents a growth opportunity for those that can add self-service and programmatic geared to these businesses into the mix.

Other highlights from the report include:

  • Total digital video, including mobile and desktop, rose to $5.2 billion in HY 2017, up 36% from $3.8 billion in HY 2016
  • Video on mobile overtook video on display for the first time, with mobile video reaching $2.6 billion in HY 2017, compared with display video, which was just shy of that same figure
  • Total social media advertising, including mobile and desktop, brought in revenues of $ $9.5 billion in HY 2017, a 37% upswing over $7 billion in HY 2016
  • Total digital audio advertising, including mobile and desktop, generated $603 million in HY 2017, a 42% increase over HY 2016’s revenue of $425 million

“Being nimble and accessible are hallmarks of the new digital economy,” said Randall Rothenberg, CEO, IAB. “Now, anyone with a good idea and a credit card can capture the attention of their customers directly, and this in turn represents an enormous growth opportunity for both marketers and publishers alike to help make these connections.”

“We’ve seen digital marketing revenues climb steadily and this new analysis shows that there are more opportunities to be mined,” said Chris Kuist, Senior Vice President, Research and Impact, IAB. “Varied audiences and advertising approaches can appeal to a wide variety of marketers in different shapes and sizes, bringing more dollars into the ecosystem and increasing the health of the interactive marketplace for all.”

“We should no longer think of the internet as mobile versus desktop,” said David Silverman, Partner, PwC US. “Advertisers are simply following consumers, who live their lives online—whether on a smartphone during a commute, on a desktop at work, or on a tablet for entertainment in the evening. Digital is an intrinsic part of every American’s day.”

Historical Half-Year Revenue Growth (in millions)

Year Revenue % Growth
HY 17 $40,138 22%
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

Comparison of Half-Year Revenue Growth (in millions)

Desktop and Mobile Half Year 2017 Half Year 2016
% $ % $
Search 47.7% $19,134 49.4% $16,160
Banner 30.8% $12,361 30.1% $9,862
Sponsorships 1.0% $387 0.9% $301
Rich media 2.8% $1,129 2.7% $875
Ad banners / display ads 27.0% $10,844 26.5% $8,686
Digital Video Commercials 13.0% $5,202 11.7% $3,832
Other 8.6% $3,438 8.8% $2,883
Classifieds and Directories 3.8% $1,524 3.8% $1,248
Lead Generation 3.2% $1,268 3.6% $1,184
Audio 1.5% $603 1.3% $425
Other 0.1% $42 0.1% $25
Total 100.0% $40,138 100.0% $32,739

Comparison of Revenue Models (in millions)

Format Type Half Year 2017 Half Year 2016
% $ % $
Impression-based 33.4% $13,404 33.9% $11,112
Performance-based 64.9% $26,042 64.6% $21,158
Hybrid 1.7% $691 1.4% $469
Total 100.0% $40,138 100.0% $32,739

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 advertising 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. The current report and addendum, and past reports are available at www.iab.com/adrevenuereport.

Read the full article on BusinessWire

Join us at Spigot Inc. Send resume and cover letter to careers@spigot.com for review! Check out all of our adventures on the Spigot Inc blog.

Be sure to follow us on Twitter and Instagram… like us on Facebook and never miss out on our cool Spigot Inc lifestyle.

2017-12-22T15:09:47+00:00 December 20th, 2017|

About the Author: