IAB/PwC Internet Advertising Revenue Report · Social Media Added Quarterly Internet Ad Revenue Growth Trends, in Billions 1996–2015 1999 Search Added Rich Media, Lead Gen & Classifieds

IAB/PwC Internet Advertising Revenue Report2015 Full Year and Q4 2015

April 21, 2016

IAB/PwC Digital Ad Revenue Report Highlights

Apr. 2016

2015 Full Year and Q4 2015

2

Sherrill Mane SVP, Research, Analytics and Measurement, IAB

IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report

2015 Full Year Digital Ad Revenue Highlights

3

“To improve is to change;

to be perfect is to change often.”

-- Winston Churchill


1996 – 2016: 20 Years of IAB Internet Ad Revenue Reporting

Happy 20th Birthday!!!


20 Years of Tracking Internet Ad Revenue

5

In b

illi

on

s

’97 ’98 ’99 ’09’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’10 ’11 ’12 ’13 ’14’96

First Internet Ad Revenue

Report

1996 1997 1998 2000 2001 2002 2004 2005 2006 2007 2008 2009 2010 2011 20122003 2013

Mobile Subformats

Added

Mobile Added

1996

$267M

VideoAdded

Formats Added to Report:Banners,

Sponsorships, Interstitials, Email, Other

Social MediaAdded

Quarterly Internet Ad Revenue Growth Trends, in Billions 1996–2015

1999

Search Added

Rich Media, Lead Gen & Classifieds

Added

2014 2015


2016

$59.6B

’15

Annual Interactive Ad Revenue Exhibits Double Digit Growth for the Sixth Consecutive Year

6

2015 US interactive ad revenue totals $59.6 billion

This represents an increase of 20.4% over last year and equals $10.1 billion

Stellar annual revenue picture for digital advertising contrasts with small overall ad market declines reported by Nielsen (-5 %)

Key drivers of revenue growth: Mobile exceeds $20 ($20.7) billion, up 66% and now accounting for 35% of total

interactive ad revenue

Digital video continues double digit growth, up 30% since last year for a total of $4.2 billion, an increase of nearly $1 billion

Across measured platforms and formats, aggregate social media advertising revenue closed the year at $10.9 billion, up 55% from 2014


Full Year 2015 Interactive Advertising Outpaces the Market

7

Softness in (desktop) display, sponsorships and rich media: Display/Banners now at $7.7 billion (-4%), and sponsorships at $649 million, rich media at $1.3 billion

Migration to mobile is further supported by 80% growth in all mobile display related advertising including mobile video, banners, etc., closing the year at $11 billion

Similar patterns prevail for 4th quarter 2015 internet ad revenue, up 23% overall from same time in 2014, to a total of $17.4 billion


FY 2015 Year Over Year Revenue Growth

8

$ B

illio

ns

Sources: IAB Internet Advertising Revenue Report, 2015 First Half Year and 2nd Quarter Report; The Nielsen Company, MonitorPlus

(Standard Calendar, Total includes B2B, National Internet (Display only), FSI Coupons), Apr. 2016

The Nielsen Company

estimates total media

revenues decreased

5% over 2015 to

$119.8B.

$49.5

$59.5

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

FY 2014 FY 2015

Total Media Ad Revenue Growth

(FY 2014 vs. FY 2015)

Digital Ad Revenue Growth (FY 2014 vs. FY 2015)

20%


Mobile Advertising Revenue Growth Continues

9

$0.6 $1.2

$3.0

$5.3

$8.2

$0.6

$1.6$3.4

$7.1

FY '10 FY'11 FY'12 FY '13 FY '14 FY '15

1st Half Year 2nd Half Year

Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015

US Mobile Ad Revenue ($ Billions)First Half Year, Full Year and % YoY Growth

9

Growth

FY: 149%

Growth

1HY: 95%

FY: 111%

$1.0$2.1

$12.5


Growth

1HY: 54%

FY: 66%

$4.0

$7.1Growth

1HY:145%

FY: 110%

Growth

1HY: 75%

FY: 76%

*Full year totals accurately reflect the sum of half year totals as rounded to two decimal places.

$20.7

$12.4

Digital Video Advertising on a Growth Trajectory, FH Year Revenue More than Tripled Since 2010

10

FY '10 FY'11 FY'12 FY '13 FY '14 HY'15



US Video Ad Revenue ($ Billions)First Half Year, Full Year and % YoY Growth

10

Growth

1HY: 47%

FY: 29%

$2.2


Growth

1HY: 35%

FY: 30%Growth

1HY: 24%

FY: 19%

Growth

1HY: 18%

FY: 29%

Growth

1HY: 13%

FY: 17%

$3.3B

$2.8B

$2.3B

$1.8B

$1.4B

$0.6B $0.9B $1.0B $1.3B $1.5B $2.0B

$0.8B

$0.9B

$1.3B

$1.5B

$1.8B

$4.2B

$2.2B

Social Media Advertising Revenue Grows Over 50% Every Year Measured

11

$2.9

$4.5

$7.0

$10.9

FY'12 FY '13 FY '14 HY '15


$4.4

$6.4


US Social Media Ad Revenue ($ Billions)First Half Year, Full Year and % YoY Growth

11

Growth

1HY: 50%

FY: 53%

$2.6$2.2

$2.9


Growth

1HY: 51%

FY: 55% Growth

1HY: 58%

FY: 57%

$4.1

$1.9$1.2

$1.7

Q4 2015 Revenue Compared With Q4 2014

12

$ B

illio

ns According to Nielsen, total media

revenues decreased 3% from

Q4 2014 to Q4 2015 to 33.9B.

$14.2

$17.4

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

$20.0

Q4 2014 Q4 2015

Total Media Ad Revenue Change

(Q4 '14 vs. Q4 '15)

Digital Ad Revenue Growth (Q4 '14 vs. Q4 '15)

23%

Sources: IAB Internet Advertising Revenue Report, 2015 First Half Year and Q4Report; The Nielsen Company, MonitorPlus (Standard

Calendar, Total includes B2B, National Internet (Display only), FSI Coupons), Apr. 2016


Q4 2015 Ad Revenue Growth Digital vs. Top Non-Digital Media

13

-3%

7%

1%

15%

Total Ad Revenue Q4 ‘14 vs. Q4 ‘15 ($Billions)

$4.5

$1.5

$3.0

$6.8

$15.2

$4.4

$1.6

$2.7

$6.4

$15.5

Magazine

Radio

Newspaper

Cable TV

Broadcast TV

Q4 '15

Q4 '14

$11.7 $14.3Internet

Percent

YoY Change

23%

2%

-6%

-13%

6%

-3%


Source: Nielsen FY 2015, Apr. 2016

+Source: PWC IAB First Half Year and Q4 2015 Internet Advertising Revenue Report, Apr. 2016

The total U.S. advertising market includes other segments not charted here.Broadcast Television includes Network and Syndicated and Spot television advertising revenue. Cable Television includes National Cable Networks and Local Cable television advertising revenue.Radio includes Network and Spot Radio advertising revenue. Newspaper includes Local, National, Sunday Supplement. Magazine includes Local, National.

$-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

$50.00

1Q_13 2Q_13 3Q_13 4Q_13 1Q_14 2Q_14 3Q_14 4Q_14 1Q_15 2Q_15 3Q_15 4Q_15

WebCosts Eight Category Average CPM

Q1 2013 – Q4 2015

Finance / Insurance / Investment

Automotive

Home and Fashion Family & Lifestyles

News &

Information Corporate Information Search Engines / Portals & Communities

Entertainment

SQAD Copyright(c) 2009-2016 SQAD LLC - All Rights Reserved

Display: Eight Category Avg. CPM Trend Weighted Average - CPM of All buys Placed Within the Quarter - Dec. 2015

15SQAD Copyright(c) 2009-2016 SQAD LLC - All Rights Reserved

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

$11.00

$12.00

$13.00

$14.00

$15.00

January February March April May June July August September October November December

WebCosts Display Composite FiftyAverage CPM, 2013 Through 2015

2013 2014 2015

2013 Average CPM: $11.61

2014 Average CPM: $11.35

2015 Average CPM Full Year: $12.09

32

17

10

10

20

30

40

Up Down Flat

2015 Q4 Average CPM Compared to 2014 Year

Average. CPM

WebCosts Display Composite Fifty Average CPM, Full Year 2015 - Fifty Same-Site Comparative Report

SQAD WebCosts Copyright(c) 2009-2016 SQAD LLC - All Rights Reserved.

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4

Display and In-Stream Video Quarterly CPM Comparison

All sites / All Categories WebCosts Database

Display Average In-Stream Average

Display and In-Stream Video Quarterly CPM Comparison WebCosts Database, All sites / All Categories

Key Takeaways

17

*Note: Display-related ad formats are defined as: banner ads, digital video commercials, rich media, and sponsorships.


Brand spend continues to rise:

• CPMs up

• Digital video continues to grown significantly (+30%)

• Revenue associated with impression based advertising up 21% and holding a one third share as it has for some time now

• $11 billion of mobile revenue, nearly half of its total, is coming from display-related mobile formats including video

Dollars moving from other media into digital, all forms of digital

• Unabated growth in a flat top media market

• Mobile likely garnering incremental spend from other media, digital media and through “experimental” budgets

Key Takeaways

18

*Note: Display-related ad formats are defined as: banner ads, digital video commercials, rich media, and sponsorships.


Positive effects of improved measurement, viewable inventory and combatting fraud becoming noticeable

Programmatic buying contributing to new supply demand relationships

• Rising CPMs along with demand likely offset inventory supply changes

IAB/PwC Digital Ad Revenue Report Highlights

Apr. 2016

2015 Full Year and Q4 2015

19

Sherrill Mane SVP, Research, Analytics and Measurement, IAB


THANK YOU

FOLLOW-UP QUESTIONS:

Additional questions from IAB members can be directed to Kristina Sruoginis:

[email protected]

Additional press questions can be directed to Laura Goldberg:

[email protected]

Reports (from 1996 to present) can be found at: http://www.iab.net/adrevenuereport


mailto:[email protected]

mailto:[email protected]

http://www.iab.net/adrevenuereport

Documents

IAB/PwC Internet Advertising Revenue Report · Social Media Added Quarterly Internet Ad Revenue Growth Trends, in Billions 1996–2015 1999 Search Added Rich Media, Lead Gen & Classifieds