Half of US online ad revenue now coming from mobile

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Almost half of all online advertising in the US is now mobile, with total revenues from online media reaching $32.7bn during the last six months. That’s an increase of 19.1%, up from $27.5bn last year. The new findings have been released as part of the IAB internet advertising revenue report conducted by PwC US.

US online media revenue

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Source: iab.com

Mobile revenue made the biggest jump, up 89% to $15.5bn from $8.2bn in 2015. It now represents 47% of total internet advertising revenue. Video on smartphones and tablets is performing particularly well with strong triple-digit growth, rising 178% to reach $1.6bn. Mobile search advertising formats also increased, reaching $7.4bn. That’s a jump of 105% compared to last year’s $3.6bn.

Mobile ads perform strong

 

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Source: iab.com

For the first time, mobile has topped Search to become the leading format in the category. Mobile ad revenues represented 47% of the total half-year revenues in 2016, compared to 30% in 2015. Meanwhile, desktop is losing out to mobile, dropping to 27% during the second half of 2016.

Mobile Search leads

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Source: iab.com

IAB noted a significant shift toward Display and Search on mobile. However, Display grew just 2% between 2015 and 2016, whilst Search jumped 17%.

A closer look at digital video revenues reveals that mobile still trails desktop ad spending. However, it noted impressive growth from 2015 to 2016 at 178%.

Digital video advertising

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Source: iab.com

Randall Rothenberg, President and CEO, IAB, explains:

randall rothenberg

“These half-year revenues are a testament to the role of digital screens – especially mobile screens – in consumers’ increasingly connected lives. Marketers and brands clearly recognize the innate power of digital to offer immersive experiences and secure real-time engagement.”

Indeed, the research demonstrates the growing importance of mobile devices and mobile advertising. In particular, video formats are the ones to watch.