In the first six months of 2012, internet advertising revenues increased to a record level of $17 billion according to the IAB and PricewaterhouseCoopers. This represents a 14% increase over the first six months of 2011. During this same period, mobile advertising surged 95% to a total of $1.2 billion, up from $636 million in the first six months of 2011.
This growth in mobile advertising is expected to continue at least through 2016 when BIA/Kelsey projects local mobile advertising will come in at $5.8 billion. With a compound annual growth rate of approximately 50%, mobile advertising is expected to increase dramatically over the next few years. In 2016, total mobile ad spending is expected to reach $9.92 billion with targeted local mobile ads taking up 58% share of all mobile ad spending.
The report by the IAB and PricewaterhouseCoopers also reports the following increases in internet advertising.
- 18% increase in digital video advertising which totaled more than $1 billion in the first six months of 2012
- Search revenues increased to $8.1 billion, a 19% increase.
- Almost $5.6 billion in display-related ad profits. This figure represents 33% of 2012 half year revenues.
- Retail advertising continues to be the largest segment of Internet ad spending with 20% of the total or $3.4 billion in revenue.
The IAB/PWC report “establishes that marketers increasingly embrace mobile and digital video (and) interactive platforms,” according to IAB president and CEO Randall Rothenberg. He goes on to note that according to a study by the Harvard Business School that ad-supported internet ecosystem have been identified as a critical driver of the U.S. economy.
Is your company embracing the new wave of internet and mobile advertising? To explore your mobile advertising options call Qiigo at (404) 496-6841.
