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Mobile accounts for nearly half of all US online ad revenues


By Ronan Shields, Digital Editor

November 1, 2016 | 3 min read

Nearly half of all internet advertising is now mobile in the US, with total revenues from online media hitting $32.7bn in the first half of 2016, according to the latest numbers from the IAB.

Credit: IAB

Credit: IAB

The trade group today (November 1) released its latest report today proclaiming the figure an “all-time high”, growing nearly 19% over the same period last year, with mobile advertising at the center of the growth.

Spend on the medium surged 89% compared to the same period last year, hitting $15.5bn in the first half of the year, with mobile advertising now accounting for 47% of all revenues from online advertising in the US.

The report, conducted by PwC, further probed the numbers finding that within mobile advertising total search and video experienced triple-digit growth during the period, with IAB chief executive Randall Rothenberg saying the spending patterns reflected “consumers’ increasingly connected lives”.

David Doty, IAB, chief marketing officer, added: “Consumers’ appetite to enjoy media—in particular video and social media—on smartphones and tablets provides marketers with the opportunity to connect and interact with their customers while they are on the go, in a very personal environment.”

A comparison with previous reports shows that the 19% overall growth in revenues was flat compared to the same period last year, with a further breakdown of the statistics demonstrating advertisers and media owners increasingly opting for impression-based pricing models (see chart below).

Credit: IAB

Below are some of the top line statistics from the IAB survey* of spending patterns for the first half of 2016:

-Mobile video revenues rose 178% annually to hit $1.6bn

-Mobile search rose 105% annually to hit $7.4bn

-Total digital video revenues rose 51% annually to hit $3.9bn

-Total search revenues rose 19% annually to hit $16.3bn

-Social media revenues rose 57% annually to hit $7bn

Credit: IAB

*The findings are based on the surveys of advertisers, media owners and those offering commercial online services. A full copy of the report can be downloaded here

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