Programmatic Lunch

Mobile Drives Strong US Digital Ad Revenue Growth

David Murphy

KidsH1 2016 digital ad revenues in the US hit $32.7bn (£26.6bn), according to the latest IAB Internet Advertising Revenue Report released by the IAB and prepared by PwC US. This represents a 19 per cent increase over last year’s half-year revenues of $27.5bn.

Mobile revenue saw the largest year-on-year change, climbing to $15.5bn, up 89 per cent from $8.2bn in HY 2015. That $15.5bn figure represents 47 per cent of total internet advertising revenue. Revenues from video advertising on smartphones and tablets saw strong triple-digit growth, reaching $1.6bn in H1 2016, up 178 per cent year-on-year. Mobile search also posted a significant 105 per cent increase, up to $7.4bn from $3.6bn a year earlier. Total digital video, including mobile and desktop, rose to $3.9bn in H1 2016, up 51 per cent year-on-year.

Total search, including mobile and desktop, accounts for half of all internet ad revenue, and hit $16.3bn in H1 2016, a 19 per cent year-on-year increase. Total social media revenues, including mobile and desktop, surged to $7bn, up 57 per cent rise.

Of the sector verticals measured, the top three continue to amass nearly half of all ad spend (46 per cent). Retail accounted for 21 per cent, Financial Services for 13 per cent, and Automotive for 12 per cent.

“These half-year revenues are a testament to the role of digital screens - especially mobile screens - in consumers’ increasingly connected lives,” said IAB president and CEO, Randall Rothenberg. “Marketers and brands clearly recognize the innate power of digital to offer immersive experiences and secure real-time engagement.”