Planning Internet Advertising Spend in the Coming Year

by | 2 minute read

Compared to the first half of 2016, the first six months of 2017 yielded a 22.6% increase in internet/online/mobile advertising revenues, according to IAB’s Internet Advertising Revenue Report. That’s a 7.4% increase to $19.4 billion in the first quarter and a 23.1% increase to $20.8 billion in the second quarter for a grand total of $40.1 billion in the first half of 2017.

How was this spending divided?

  • Search: $19.1 billion / 47% of internet revenues
  • Banner: $12.4 billion / 31%
  • Video: $5.2 billion / 13%
  • Other: 9%
    • Classifieds: $1.5 billion
    • Lead Generation: $1.3 billion
    • Audio: $603 million

While search is the clear leader in internet ad spending, it is slowly falling in ad format percentages. In the first half of 2016, search made up 52% of desktop’s and 47% of mobile’s ad formats, however that spending fell to 50% and 46% across desktop and mobile, respectively, in the first half of 2017. Which format is beginning to take its place? Digital video. This medium rose from 13% to 14% of ad formats on desktop and 10% to 12% on mobile in the first halves of 2016 and 2017, respectively.

Not surprisingly, mobile now makes up $21.7 billion (54%) of internet advertising revenue as a whole. That’s a 40% increase compared to the $15.5 billion in revenue this medium brought in during the first six months of 2016. As a result, desktop fell from making up 53% of internet revenues in the first half of 2016 to comprise only 46% in the first half of 2017.

The first half of 2018 has only just begun, and at this time last year many companies were taking a closer look at mobile and digital video. How are you going to encourage your clients to divide their internet advertising in the coming year?

Related Articles

Rachel Cagle

Rachel Cagle

Rachel is a Research Analyst, specializing in audience intelligence, at SalesFuel. She also helps to maintain the major accounts and co-op intelligence databases. As the holder of a Bachelors degree in English from The Ohio State University, Rachel helps the rest of the SalesFuel team with their writing needs.