new-iab-logo

IAB: Internet Ad Revenues Surged in First Half of 2013

  |  October 10, 2013   |  Comments

The most recent IAB report reveals that internet ad revenues reached a new peak in the first six months of 2013.

The first half of 2013 saw internet ad revenues reach a record high, thanks to search, display-related and mobile advertising.

Revenues in the first six months of this year totaled $20.1 billion, an 18 percent increase from the same period last year, according to the IAB Internet Advertising Revenue Report. Applying previous seasonal data, 2013 annual revenue is expected to surpass the historical peak of $36.6 billion reported in 2012.

 iab1008

Breaking down ad revenue channels, search, display-related and mobile advertising take the lead. At $4.4 billion, search-related ad revenue contributed 43 percent to overall revenues in Q2 2013, up 6 percent from the same period last year. Display-related advertising (banner ads, rich media and digital video and sponsorship) represented 30 percent of total revenues, compared to 21 percent in 2012. Meanwhile, mobile revenues increased by 149 percent and surged to $1.6 billion in Q2 2013.

"Search has historically played a significant role in online advertising and continues to do so," says Sherrill Mane, senior vice president of Research, Analytics & Measurement, IAB. "Search was the first advertising format unique to digital media and changed the landscape of direct response advertising forever."

A deeper look at these three most lucrative ad formats reveals that mobile revenues soared in the first half of 2013, equal to 90 percent of 2012 total mobile revenue. While search remains the leading format with more than double the share to display-related advertising, its overall share has declined. By contrast, mobile ad revenues are expected to keep their upward trend as Google, Facebook and Twitter are expanding their mobile ad spend.

"Mobile ad revenues are increasing because marketers see the value in moving budgets to mobile," Mane tells ClickZ. "Mobile has the ability to be with the consumer at unique moments in the purchase cycle and to be a brand building vehicle. Mobile has a strong search component in it, and mobile search is part of what we report."

Budget shift aside, this most recent internet ad revenue report provides other insights including:

  • All formats other than Digital Video are down slightly as a percentage of total revenue, due to the substantial growth of mobile.
  • Retail advertisers are still the largest category of internet ad spending.
  • Nearly 65 percent of revenues were priced on a performance basis.

The report was conducted by PricewaterhouseCoopers (PwC) and was released by IAB. Get a full version of this report from IAB.

 

ClickZ Live Toronto On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!

ClickZ Live San Francisco Want to learn more? Join us at ClickZ Live San Francisco, Aug 10-12!
Educating marketers for over 15 years, ClickZ Live brings together industry thought leaders from the largest brands and agencies to deliver the most advanced, educational digital marketing agenda. Register today and save $500!

ABOUT THE AUTHOR

Yuyu Chen

Yuyu Chen is a junior reporter at ClickZ. Her work has appeared in Local East Village, New York Daily News and Brooklyn Chamber of Commerce website. Yuyu received her M.A. in Business and Economic Reporting from New York University in May, 2013.

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Stats delivers stats headlines to your inbox twice a week. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

Gartner Magic Quadrant for Digital Commerce

Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.

Paid Search in the Mobile Era

Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.

WEBINARS

Resources

Jobs

    • GREAT Campaign Project Coordinator
      GREAT Campaign Project Coordinator (British Consulate-General, New York) - New YorkThe GREAT Britain Campaign is seeking an energetic and creative...
    • Paid Search Senior Account Manager
      Paid Search Senior Account Manager (Hanapin Marketing) - BloomingtonHanapin Marketing is hiring a strategic Paid Search Senior Account Manager...
    • Paid Search Account Manager
      Paid Search Account Manager (Hanapin Marketing) - BloomingtonHanapin Marketing is hiring an experienced Paid Search Account Manager to...