IAB Reports Record-Setting Q1 Revenue Of Nearly $16 Billion

The Interactive Advertising Bureau (IAB) reported Thursday that U.S. Internet ad revenue reached a new high.

Earnings came in at $15.9 billion in Q1 2016, up from $13.2 billion in the year-ago quarter, according to the IAB Internet Advertising Revenue Report, conducted independently by PwC US. The 21% year-over-year first-quarter jump represents the sharpest spike in four years.

Last year, the industry reached its highest level of investment at over $50 billion.

This first quarter lays the foundation for what could be the biggest year yet for digital ad spending, David Doty, executive vice president and CMO, IAB, stated.

On Wednesday in a separate study, PwC released spend estimates around entertainment and media that shows an increase in the U.S. to $720 billion by 2020 -- up from $603 billion in 2015. The numbers from its Global Entertainment and Media Outlook 2016–2020 reveal an in-depth forecast for global consumer spending and advertising revenue directly related to E&M content.



Globally, PwC estimates E&M worldwide revenue to rise at a compound annual growth rate (CAGR) of 4.4% during the next five years — from $1.7 trillion in 2015 to $2.1 trillion in 2020.

By 2017, Internet advertising -- at $75.3 billion -- should overtake broadcast TV advertising for the first time in the U.S., although it's still expected to remain healthy, with a projected 2.8% CAGR and $70.4 billion. TV and video is expected to rise from $121.4 billion to $124.2 billion in 2020, per PwC.

Mobile advertising, when applied to M&E, should contribute 34.7% of total Internet ad revenue at $20.7 billion in 2015. It is projected to rise to 49.4% by 2020. Mobile video Internet ad revenue is estimated to reach $3.5 billion in 2015 to $13.3 billion in 2020, per PwC.


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