Confidential. © 2017 IHS MarkitTM. All Rights Reserved. Confidential. © 2017 IHS MarkitTM. All Rights Reserved.
Global Mobile Advertising Revenue
2016 Kia Ling Teoh, Analyst, Technology, Media and Telecom
Qingzhen Chen, Senior Analyst, Technology, Media and Telecom
Confidential. © 2017 IHS MarkitTM. All Rights Reserved.
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$51,660
$82,937
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
2015 2016
Global mobile ad revenue ($m)
© 2017 IHS Markit
Notes: All data in this presentation is in constant 2014 EUR. Constant exchange rates have been used in order to eliminate currency effects on the growth rate
Source: IHS Markit, IAB Europe, IAB
Global mobile advertising revenue up 60.5% year-on-year to $83bn
60.5%
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52.8% 54.0%
42.7% 42.8%
4.5% 3.1%
0%
20%
40%
60%
80%
100%
2015 2016
Display Search Messaging
2015 vs 2016: Mobile format shares
© 2017 IHS Markit
Source: IHS Markit, IAB Europe, IAB
Display takes lions share of spend as messaging faces further pressure
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Mobile display advertising revenue growth outperforms other formats
$27,265 $22,066
$2,329
$17,540
$13,476
$261
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
Display Search Messaging
2015 revenue 2016 additions
2016 revenue gains over 2015 ($m)
Source: IHS Markit, IAB Europe, IAB © 2017 IHS Markit
64.3% 61.1%
11.2%
0%
10%
20%
30%
40%
50%
60%
70%
Display Search Messaging
Mobile ad growth in 2016 by format (%)
© 2017 IHS Markit
Source: IHS Markit, IAB Europe, IAB © 2017 IHS Markit
Confidential. © 2017 IHS MarkitTM. All Rights Reserved.
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$22,190
$18,050
$10,622
$450 $348
$38,409
$27,492
$15,834
$656 $546 $0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
North America Asia Pacific Europe Middle East and Africa Latin America
2015 2016
2015 vs 2016: Mobile ad revenues by region ($m)
© 2017 IHS Markit
Source: IHS Markit, IAB Europe, IAB
North America remains the largest mobile advertising market
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0.7% 0.9%
20.7%
42.9%
34.9%
2015
Latin America
Middle East andAfrica
Europe
North America
Asia Pacific
Source: IHS Markit, IAB Europe, IAB
0.7% 0.8%
19.1%
46.3%
33.1%
2016
© 2017 IHS Markit
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Minor changes in share of global mobile advertising revenue
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North America remains the largest mobile display advertising market
$127
$169
$4,815
$10,310
$11,843
$235
$284
$7,306
$17,445
$19,534
$0 $5,000 $10,000 $15,000 $20,000 $25,000
Latin America
Middle East and Africa
Europe
Asia Pacific
North America
2016 2015
Source: IHS Markit, IAB Europe, IAB
2015 vs 2016: Mobile display ad revenues by region ($m)
© 2017 IHS Markit
Confidential. © 2017 IHS MarkitTM. All Rights Reserved.
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Unchanged regional ranking in mobile search advertising
$87
$131
$5,428
$6,495
$9,925
$149
$205
$8,121
$8,587
$18,479
$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000
Latin America
Middle East and Africa
Europe
Asia Pacific
North America
2016 2015
Source: IHS Markit, IAB Europe, IAB
2015 vs 2016: Mobile search ad revenues by region ($m)
© 2017 IHS Markit
Confidential. © 2017 IHS MarkitTM. All Rights Reserved.
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Robust growth in Asia Pacific mobile messaging advertising
$134
$151
$422
$378
$1,245
$161
$167
$395
$407
$1,460
$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600
Latin America
Middle East and Africa
North America
Europe
Asia Pacific
2016 2015
Source: IHS Markit, IAB Europe, IAB
2015 vs 2016: Mobile messaging ad revenues by region ($m)
© 2017 IHS Markit
Confidential. © 2017 IHS MarkitTM. All Rights Reserved.
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63.5% 46.1%
43.2% 43.3% 50.9%
31.2% 51.3%
27.3% 31.4%
48.1%
5.3% 2.6%
29.5% 25.3%
1.0%
0%
20%
40%
60%
80%
100%
Asia Pacific Europe Latin America Middle East and Africa North America
Display Search Messaging
Mobile ad revenue by format: regions
© 2017 IHS Markit
Source: IHS Markit, IAB Europe, IAB
Strong differences across format distribution globally
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Latin America mobile display market grows the fastest
51.7%
64.9%
68.2%
69.2%
85.2%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Europe
North America
Middle East and Africa
Asia Pacific
Latin America
Column1
Source: IHS Markit, IAB Europe, IAB
Mobile display ad growth in 2016 by region
© 2017 IHS Markit
Confidential. © 2017 IHS MarkitTM. All Rights Reserved.
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North America search growth takes lead on Latin America
32.2%
49.6%
57.3%
70.8%
86.2%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Asia Pacific
Europe
Middle East and Africa
Latin America
North America
Column1
Source: IHS Markit, IAB Europe, IAB
Mobile search ad growth in 2016 by region
© 2017 IHS Markit
Confidential. © 2017 IHS MarkitTM. All Rights Reserved.
Definition of Mobile Advertising Formats
• Display: Any display advertising viewed or read on a mobile phone including rich media and video advertising. This could be browser-based
as well as in-app.
• Search: Advertising appearing on specific word requests on search engines, viewed on a mobile device.
• Messaging (SMS/MMS): 3rd party ads in SMS and outbound SMS only - this includes advertising either within the body copy of an
SMS/MMS message, or outbound messaging.
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Methodology
• Market size is based on gross numbers, defined as after discounts, before agency commissions. Global market sizing and format split are
based on reported data by local IABs from around the world—each using their own methodologies—and a statistical and econometric model
that synthesizes the data. Reported data has been harmonized to adjust for discounts and agency commissions. Modeled data is based on
variables such as smartphone penetration, 3G subscriptions, and messaging volume. The model has been refined based on benchmarking
variables such as ad spend per capita, mobile subscriptions, and 3G/4G penetration as well as through interviews with key players across
the mobile advertising ecosystem. The model also takes into account the typology of mobile ad markets in terms of maturity and format
proliferation.
• All data is expressed in constant 2013 USD. Conversions into EUR are based on 2013 USD-EUR foreign exchange rates.
• Constant currency is used to eliminate exchange rate effects on growth rates. In addition, Mexico is included in Latin America rather than
North America.
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Confidential. © 2017 IHS MarkitTM. All Rights Reserved.
Thanks
Kia Ling Teoh
Qingzhen Chen
@IHS4Tech
www.technology.ihs.com
Alison Fennah
@iabeurope
/iab-europe
www.iabeurope.eu
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IHS Markit Customer Care
Americas: +1 800 IHS CARE (+1 800 447 2273)
Europe, Middle East, and Africa: +44 (0) 1344 328 300
Asia and the Pacific Rim: +604 291 3600
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