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
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
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
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
Randall Rothenberg, President and CEO, IAB, explains:
“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.