Digital Ad Revenues Hit Landmark High In First Half Of 2014, Surging to $23.1 Billion
October 21, 2014 at 3:30 AM (PT)
Internet ad revenues climbed to an historic first half-year high of $23.1 billion, according to the IAB Internet Advertising Revenue Report released TODAY (10/22) by the INTERACTIVE ADVERTISING BUREAU (IAB) and prepared by PwC US. This marks a 15% rise over 2013’s first-half ad revenues of $20.1 billion.
Maintaining the positive trajectory, second quarter 2014 internet ad revenues rose to $11.7 billion, representing a 14% year-over-year increase, up from $10.3 billion in Q2 2013.
Highlights of the report include:
- Mobile revenues increased 76% to 5.3 billion at HY 2014, from the $3 billion (15% of total) reported at HY 2013, with the 2014 six-month total consisting of $2.7 billion mobile search, $2.5 billion mobile display, and $103 million in other mobile formats
- Digital video, a component of display-related advertising, reached $1.5 billion, a 13% increase in revenue over the first half of 2013 at $1.3 billion
- Search revenues in the first half of 2014 hit $9.1 billion, up 4% from $8.7 billion in the first six months of 2013
- Display-related advertising revenues in the first half of 2014 totaled $6.5 billion, a 6% uptick from $6.1 billion in the first half of 2013, and accounted for 28% of digital advertising revenue overall
- Social media revenues, which includes advertising delivered on social platforms, including social networking and social gaming websites and apps, reached $2.9 billion in HY 2014, a double-digital hike of 58% over the same period in 2013, at $1.9 billion
- The top three advertising verticals continue to account for nearly half of advertising revenue (46%), including Retail at 21%, Financial Services at 13% and Automotive at 12%
“This report confirms the fact that brands are deepening their commitment to interactive advertising, and that mobile is seen as a crucial part of the marketing mix,” said IAB Pres./CEO RANDALL ROTHENBERG. “Moreover, with second-half revenues traditionally surpassing those in the first half of the year, this milestone achievement is potentially a harbinger of even stronger digital ad revenues to come.”
“Mobile’s continued rise speaks to consumers’ increasing reliance on smartphones and tablets, whether on-the-go or at home,” said PwC US Partner DAVID SILVERMAN. “And, digital video too is seeing gains that reflect a new ‘viewing’ paradigm that is taking place on interactive screens, big and small.”
“Consumers living online is no longer the exceptionaI -- it is the rule,” said IAB SVP/Research, Analytics and Measurement SHERRILL MANE. “Digital screens have become vital tools at every juncture of the day. It is no surprise that brand dollars have followed this growing movement at a steady clip.”