Mobile search and video revenues saw triple-digit growth during the first half of 2016 and helped total digital ad revenues to reach a record $32.7 billion (£26.5 billion), according to the latest IAB Internet Advertising Revenue Report. Mobile growth, which was recorded across the board, was key to digital outpacing other media during this period.
Mobile represented just under half of all Internet ad revenues between January and June after reaching $15.5 billion (£12.6 billion) — a staggering 30 per cent increase compared to the first half of 2015. Mobile has seen significant growth for several years now, and there are no signs of that changing across all formats.
When broken down further, mobile search revenues surged by 105 per cent to more than $7 billion (£5.7 billion), while mobile video increased by a hefty 178 per cent to $1.6 billion (£1.3 billion). David Silverman, partner at PwC US, noted that the figures “demonstrate the growing importance of mobile” and the rising demand for digital search and video on smartphones and, to a lesser extent, tablets.
While mobile’s influence is increasing, desktop also helped search to account for 50 per cent of the ad revenues generated on the Internet during the first six months of 2016, reaching $16.3 billion (£13.2 billion), which is up 19 per cent compared to12 months ago. Video’s share of ad revenues also saw a small bump in that time.
When looking at the top-spending advertisers by sector, Retail came out on top, ahead of Financial Services, Auto, Telecom, Leisure Travel, Consumer Packaged Goods, Consumer Electronics & Computers and Pharma & Healthcare.
The report does not delve into details about the impact of social on mobile, but PwC has revealed that platforms such as Facebook, Instagram and Pinterest are a driving force behind growth for mobile banner and video. Overall, social media ad revenues surpassed $7 billion (£5.7 billion) for the first time, while total social media revenues continued with strong double-digit growth.
“These half-year revenues are a testament to the role of digital screen — especially mobile screen — in consumers’ increasingly connected lives,” IAB President and CEO Randall Rothenberg said. “Marketers and brands clearly recognise the innate power of digital to offer immersive experiences and secure real-time engagement.”