Commentary

IAB Ad Revenue Continues Upward

The IAB internet advertising revenue report 2018, for the first six months conducted by PwC and sponsored by the Interactive Advertising Bureau, shows the IAB internet advertising revenue report, now in its 23rd year at November 2018, revenues increase 23.1% from HY 2017.

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Year-to-date revenues continue to show strong growth with agility, commerce, audio, Gen Z’s, and digital video highlight as this year’s growth drivers. Revenues grew 22.9% between Q1 and Q2 2018. Mobile commands 62.5% of total digital ad revenues, while Q2 2018 revenues reach $25.6b and the first 6 months reach $49.5b. 

The top 10 companies command 76% of the market, and

  • Search still leads all formats at 46.1% 
  • Video climbs to a 13.6% share of overall revenues 
  • 62.5% of all revenues are now attributed to mobile 
  • Mobile digital video revenue grows 60.5% 
  • Mobile digital video revenue hit $4.2b 
  • $13.1b of digital ad revenue attributable to social 
  • Digital audio revenues approach $1b 
  • Hybrid shoots up to 4.6% of total ad revenues 
  • CPM and performance stay relatively flat 

The background of the PwC | IAB internet advertising revenue report says that the IAB internet advertising revenue report, conducted by PricewaterhouseCoopers LLP (“PwC”) on an ongoing basis, provides results released quarterly. The “IAB internet advertising revenue report” was initiated by the interactive advertising Bureau (IAB) in 1996, and utilizes data and information reported directly to PwC from companies selling advertising on the internet, as well as publicly available corporate data. 

The results reported are considered to be a reasonable measurement of internet/online/mobile advertising revenues because much of the data is compiled directly from information supplied by companies selling advertising online. The report includes data reflecting desktop and mobile online advertising revenues from websites, commercial online services, ad networks and exchanges, mobile devices, and email providers, as well as other companies selling online advertising. 

Internet advertising revenues in the United States totaled $49.5 billion for the first six months of 2018, with Q1 2018 accounting for approximately $23.9 billion and Q2 2018 accounting for approximately $25.6 billion, says the report. Revenues for the first six months of 2018 increased 23.1% over the first six months of 2017. 

Internet advertising revenues in the United States totaled $25.6 billion in the second quarter of 2018, an increase of 7.2% from the 2018 first quarter total of $23.9 billion, and an increase of 22.9% from the 2017 second quarter total of $20.8 billion. 

Advertising revenues delivered on mobile devices totaled $30.9 billion in HY 2018, a 42.0% increase from the prior half year revenues of $21.8 billion. Advertising delivered on a mobile device now makes up 62.5% of total internet advertising revenues. 

Over the course of the last 23 years, this report has served as the official tracking mechanism of the size of the digital advertising industry and the trends propelling its ongoing rise. This 2018 half year report continues to drive awareness of the great influence of this industry, and specifically the great transformation that has occurred in the advertising ecosystem,” says the PwC | IAB internet advertising revenue report from David Silverman, Partner, PwC.

 

 

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