Mobile advertising accounted for more than half (51%) of the record-breaking $72.5 billion spent by advertisers last year, according to the latest IAB Internet Advertising Revenue Report, released by the Interactive Advertising Bureau (IAB), and prepared by PwC US. The total represents a 22 percent increase, up from $59.6 billion in 2015. Mobile experienced a 77 percent upswing from $20.7 billion the previous year, hitting $36.6 billion in 2016.
Other highlights from the report include:
- Digital video hit a record $9.1 billion in 2016, a 53 percent year-over-year rise from $5.9 billion in 2015
- On mobile devices, video revenue skyrocketed, more than doubling—up 145 percent year-over-year—to nearly $4.2 billion
- Social media advertising generated $16.3 billion last year, climbing 50 percent over 2015’s $10.9 billion
- Search revenues reached nearly $35 billion in 2016, up 19 percent from $29.5 billion in 2015
- Digital audio, measured for the first time in this report, brought in revenues of $1.1 billion in 2016
- Retail, representing 21.3 percent of internet ad spend in 2016, Financial Services at 13.3 percent, and automotive at 12.5 percent, continue to have the largest category share, with Media (5.2%) picking up speed, up 13 percent over 2015
“Mobile fueled the internet economy in 2016, with advertisers showing their confidence in digital to achieve their marketing goals,” said Randall Rothenberg, President and CEO, IAB. “This increasing commitment is a reflection of brands’ ongoing marketing shift from ‘mobile-first’ to ‘mobile-only’ in order to keep pace with today’s on-the-go consumers.”
“In a mobile world, it is no surprise that mobile ad revenues now take more than half of the digital market share,” said David Doty, Executive Vice President and CMO, IAB. “Digital video’s powerful ability to attract engaged audiences is naturally attracting greater investments. Next week’s NewFronts presentations will showcase the latest in original digital video content, certain to spark even greater interest from marketers and media buyers.”
“Mobile, social, video, and programmatic trends combine to redefine the digital landscape, providing unprecedented access for advertisers to reach consumers,” said David Silverman, partner, PwC US. “Digital audio, generating $1.1 billion in 2016 speaks to the continued evolution of new formats that enable marketers to find audiences at home, behind their desks, or wherever they are.”
Last year closed on a particularly strong note, as Q4 revenue hit a record $21.6 billion, an increase of more than 24 percent year-over-year. In addition, mobile took an even greater share of the final quarter’s U.S. digital advertising revenue than it did for the whole of 2016, claiming 53 percent of total revenue in the fourth quarter.
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