The Interactive Advertising Bureau (IAB) reported recently that the U.S. digital ad spending has climbed to $27.5 billion in the first half of 2015, a 19 percent increase over the 1st half of last year. IAB tracked digital ads in mobile, non-mobile video and social media networks. Its evaluation of Internet advertising revenues includes earnings from websites, publishers, commercial online services, email providers, and others in the online advertising space. The IAB findings are considered accurate as the data is gathered directly from a variety of companies that sell advertising online through surveys. There has been gradual growth of digital advertising in the past six years, especially in each year’s first 6 months.
In 2015, mobile advertising took 30 percent of the budgets spent and increased 54 percent to $8.2 billion. Under mobile, the IAB report merges several categories of ads, for example mobile search ads (has reached $3.6 billion this year), and mobile display ads (at $4.3 billion in 2015). Social media advertising in Facebook, Twitter, social gaming apps and social gaming websites also grown with revenues of $4.4 billion in the first half of 2015, representing a 51 percent increase over last year’s same period. Retail has spent the most (22 percent), followed by financial services (13 percent), the automotive industry (12 percent) and telecom and travel (each 9 percent). Healthcare, pharmaceuticals, and media and entertainment have spent the least at about 4 -5 percent each). *Credit: IAB ad revenue report.
With growing concerns in regards to ad blocking technologies and ad fraud, these numbers may go downwards next year, although the big ad participants are ‘playing’ strong. eMarketer reported earlier this year that nearly 56 percent of all U.S. online ad revenue goes to four major global market participants: Google, Facebook, Twitter and LinkedIn. These companies earned from online ads as follows: Google 40.1 percent, Facebook 13.2 percent, Twitter 2.2 percent, and LinkedIn gained 1 percent. These four players revenues are likely to increase next year due to their advantageous global reach and since they can offer a more authentic and a higher degree of customer targeting. Each of these enterprises can identify individual users more distinctively through login and user profiles.
Apple was not included in the above eMarketer survey, however eMarketer’s research shows that Apple’s share of mobile ad revenue in the U.S. is 2.6 percent today. Apple’s portion is expected to increase as the company continues to pursue Internet advertising. Leveraging their significant share in the global mobile devices space, Apple might focus on mobile ads.
1. IAB sponsored the above survey which was conducted by PwC (PricewaterhouseCoopers)
Press release announcing the ‘Internet Advertising Revenue survey’
2. eMarketer research website
eMarketer research of U.S. online ad revenue in 2015.
Read about eMarketer findings of U.S. Digital Display Market by 2017
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