IAB Internet Advertising Revenue Report 2016

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1
U
www.pwc.com
www.iab.net
IAB internet advertising
revenue report
2016 first six months results
November 2016
An industr...

2
Table of Contents
Background...............................................................................................

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Background
About the IAB internet advertising revenue report
Conducted by PwC Advisory Services LLC (“PwC”) on an ongoin...

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Executive summary
IAB internet advertising revenue report 2016 second quarter
and first six months highlights
Internet a...

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Year-to-date revenues show strong
growth
HY 2015 vs. HY 2016 ($ billions)
$27.48
$32.74
HY 2015 HY 2016
19.1%
Source: IA...

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Detailed findings
Revenues totaled $16.9 billion in Q2 2016
Total 2016 second-quarter revenues were $2.6 billion (18.1%)...

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Continued strong second-quarter
revenue growth
2016 second-quarter revenues increased 18.1% on a year-over-year basis an...

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Continued historical quarterly revenue
trends
Quarterly growth continued upward trend
From the momentum built in 2010, i...

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Historical revenue mix – first half vs.
second half
First-half revenues reached $32.7 billion
Applying historical season...

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Historical data findings
Annual and quarterly revenue growth
Revenue (in
mil)
Q/Q Growth Y/Y Growth Revenue (in
mil)
Q/...

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Revenue concentration
Top 10 companies command 74% of revenues in Q2 2016
Online advertising revenues remain concentrat...

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Ad format – second quarter 2016 results
Mobile surpasses Search as the lead ad format for the first
time
 Desktop Sear...

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Ad format – first half 2016 results
Mobile continued its increase in revenue share, with Mobile
Display leading Mobile ...

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Historical format trends
For the first time Mobile tops Search to become the leading
ad format
 Mobile ad revenues con...

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As eyeballs shift to Mobile – Display and
Search follow
We have noted a significant shift of Display and Search
activit...

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Across desktop and mobile, Digital
Video generated the greatest gain of any
format
Though Digital Video experienced mod...

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Social media advertising revenue
Strong growth each half-year in social
For the first half of 2016, Social media revenu...

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Ad revenues by industry category
Retail drives advertising, as dollars shift to digital
 Retail advertisers continue t...

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Industry advertising – year-over-year
comparison
Internet ad revenues by major industry category*, year to date: 2015 v...

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Revenues by pricing model
Performance-based pricing shows slight downtick
 Approximately 65% of HY 2016 revenues were ...

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Historical pricing model trends
Performance-based pricing remains the preferred model
• Performance-based pricing, the ...

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Appendix
Definitions of leading industry categories
The industry categories used in the "IAB Internet Advertising Reven...

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Definitions of advertising formats and pricing models
Banner
Advertising
Advertiser pays an online company for space on...

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Definitions of advertising formats and pricing models (cont.)
Digital Audio Partially or entirely advertising-supported...

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Survey scope and methodology
Survey scope
The Interactive Advertising Bureau (IAB) retained PwC to establish a benchmar...

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About the Interactive Advertising Bureau
The Interactive Advertising Bureau (IAB) empowers the media and marketing indu...

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PwC’s Technology and Entertainment, Media, and
Communications practices
As business, accounting, and tax advisors to ma...

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www.pwc.com/e&m

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