It’s time for sizing up and as NewFronts approach quickly, the Interactive Advertising Bureau today did its statistical roundup of 2014.
By its tabulations, digital advertising revenues were $49.5 billion up 16% over the year before, and that marks the fifth straight year of double-digit growth. (Anything less than double digit about anything digital seems to be time for major panic.)
In a way, though, digital video, a part of display related advertising, was not that much of a story. Its revenues increased 17% to $3.3 billion which sounds good until you recognize that mobile advertising grabbed $12.5 billion and that’s a stunning, silly increase of 76%. And social media was up 57%, to $7 billion.
Less hot-- a lot less--was search advertising, up 3% but it still representing a whopping $19 billion worth of revenue.
All digital display advertising brought in $13.5 billion, up 5% from a year ago. But it represents 27% of all digital revenue, just ahead of the surging mobile sector, now at 25%.
Who’s doing all the buying? Well, the usual suspects, in exactly the same proportion as a year ago, the IAB says. Retail advertisers make up 21% followed by financial (13%) and automotive (12%),
The whole report is available online, and indeed, if it wasn't, now that would be big news.
ALL DIGITAL PROGRAMMATIC ADS ARE NOT LOCAL: But that’s a hot area.
Borrell Associates, which is a big player in that space, says that just 10% of all locally-placed digital advertising, amounting to about $5 billion, arrives via programmatic services.
But it predicts most of it will be in five years, so that by 2019, that dollar total will soar to $47 billion. It predicts by then 61% of local digital advertising and 97% of national will be purchased via programmatic.
These changes aren’t being fully anticipated. Borrell says of 154 local digital managers it polled, about 70% have made no changes to their staffs dedicated to ad operations because of programmatic, and 55.3% don’t have a full-time programmatic manager.