According to the IAB Internet Advertising Revenue Report conducted by PricewaterhouseCoopers (PWC) and released on October 20, 2014. Internet ad revenues climbed to an all-time high for the first half of 2014, reaching $23.1 billion and demonstrating the growing power of digital marketing dollars. This new benchmark constitutes a 15 percent growth over the first half ad revenues for 2013, which came in at around $20.1 billion. IAB reports that during the second quarter of 2014 alone, Internet ad revenues rose to $11.7 billion, which represents a 14 percent year over year increase (compared to the $10.3 billion in ad revenue brought in for the second quarter of 2013).
This positive growth is reflected in the world of mobile advertising as well. The report found that at the half year mark for 2014, mobile ad revenues had increased a whopping 76 percent to $5.3 billion, compared to the $3 billion reported at the halfway point for 2013 (15 percent of total). The 2014 six month totals for all mobile were as follows: $2.7 billion for mobile search, $2.5 billion for mobile display, and $103 million in revenue for other mobile formats.
Here are some other takeaways from the report:
- Digital video advertising reached $1.5 billion for the first half of 2014 (a 13 percent revenue increase over 2013), demonstrating the growing strength of this sector of display related advertising.
- Social media ad revenues (covering both social gaming and social networking websites and apps) saw a 58 percent hike from the mid-mark 2013 to 2014, reaching $2.9 billion in 2014 (versus $1.9 billion in 2013).
- Search ad revenues also saw growth for the first half of this year, hitting $9.1 billion (up 4 percent from $8.7 billion for HY 2013).
- Display related advertising revenues for the first half of 2014 increased 6 percent from 2013 (from $6.1 billion to $6.5 billion). This advertising sector accounted for 28 percent of digital advertising revenue overall.
- The top three advertising verticals (retail, financial services, and automotive) currently account for 46 percent of advertising revenue. This breaks down to 21 percent for retail, 13 percent for financial services, and 12 percent for automotive.
The IAB (Interactive Advertising Bureau) is comprised of over 650 leading media and technology companies.
Essany, Michael. “Internet Ad Revenues Accelerate to All Time Highs.” Mobile Marketing Watch. 10/23/14.
IAB. “IAB Internet Advertising Revenue Report Conducted by PricewaterhouseCoopers (PWC).” Interactive Advertising Bureau. 10/20/14.