Planning Internet Advertising Spend in the Coming Year
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?