Advanced Television

Digital ad revenues up 15%

October 22, 2014

Internet ad revenues climbed to an first half-year high of $23.1 billion, according to the IAB Internet Advertising Revenue (IAB) Report, prepared by PwC US. This marks a 15 per cent rise over 2013’s first-half ad revenues of $20.1 billion.

Maintaining the positive trajectory, second quarter 2014 Internet ad revenues rose to $11.7 billion, representing a 14 per cent year-over-year increase, up from $10.3 billion in Q2 2013.

Highlights of the report include:
•    Mobile revenues increased 76 per cent to 5.3 billion at HY 2014, from the $3 billion (15 per cent of total) reported at HY 2013, with the 2014 six month total consisting of $2.7 billion mobile search, $2.5 billion mobile display, and $103 million in other mobile formats
•    Digital video, a component of display-related advertising, reached $1.5 billion, a 13 per cent increase in revenue over the first half of 2013 at $1.3 billion
•    Search revenues in the first half of 2014 hit $9.1 billion, up 4 per cent from $8.7 billion in the first six months of 2013
•    Display-related advertising revenues in the first half of 2014 totalled $6.5 billion, a 6 per cent uptick from $6.1 billion in the first half of 2013, and accounted for 28 per cent of digital advertising revenue overall
•    Social media revenues, which includes advertising delivered on social platforms, including social networking and social gaming websites and apps, reached $2.9 billion in HY 2014, a double-digital hike of 58 per cent over the same period in 2013, at $1.9 billion

“This report confirms the fact that brands are deepening their commitment to interactive advertising, and that mobile is seen as a crucial part of the marketing mix,” said Randall Rothenberg, President and CEO, IAB. “Moreover, with second half revenues traditionally surpassing those in the first half of the year, this milestone achievement is potentially a harbinger of even stronger digital ad revenues to come.”

“Mobile’s continued rise speaks to consumers’ increasing reliance on smartphones and tablets, whether on-the-go or at home,” said David Silverman, a partner at PwC US. “And, digital video too is seeing gains that reflect a new ‘viewing’ paradigm that is taking place on interactive screens, big and small.”

“Consumers living online is no longer the exception—It is the rule,” said Sherrill Mane, Senior Vice President, Research, Analytics and Measurement, IAB. “Digital screens have become vital tools at every juncture of the day. It is no surprise that brand dollars have followed this growing movement at a steady clip.”

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