iab/pwc internet advertising revenue report · global entertainment and media outlook 2016 - 2020...

IAB/PwC Internet Advertising Revenue ReportFirst Half Year 2016 and Q2 2016

November 1, 2016

IAB First Half Year 2016 and Q2 2016 Internet Advertising Revenue Report

IAB/PwC Internet Ad Revenue Report: First Half Year 2016 and Q2 2016Agenda

2

Welcome

Kristina Sruoginis, Research Director, IAB

Half Year and Q2 2016 Digital Ad Revenue Highlights

David Doty, EVP and CMO, IAB


Detailed Analysis of IAB PwC First Half Year 2016 and Q2 2016 Report

David Silverman, Partner, PwC

Global Entertainment and Media Outlook 2016 - 2020

Gregory Boyer, Partner, Entertainment, Media and Communications,

PwC

Q & A


Important Note on Q&A

3

Journalists and IAB members can ask questions at

any time during the presentations. Please type

questions into the chat box on the webinar user

interface.

● We will create a queue and answer as

many questions as possible following the

presentations

● Additional press questions can be

directed to Laura Goldberg:

[email protected]

● Additional questions from IAB members

can be directed to Kristina Sruoginis:

[email protected]

The presentations and report will be available for

download after the webinar at:

https://www.iab.com/adrevenuereport

mailto:[email protected]


http://www.iab.net/adrevenuereport


IAB/PwC Internet Advertising Revenue Report HighlightsNovember 2016

First Half Year 2016 and Q2 2016

David Doty, EVP and CMO, IAB



First Half 2016 Year-Over-Year Ad Revenue Growth

5

$ B

illio

ns

*The Nielsen Company, MonitorPlus (Standard Calendar, Total includes B2B, National Internet (Display only), FSI

Coupons), Oct. 2016

Total Media Ad

Revenue Growth

(HY 2015 vs. HY 2016)

The Nielsen Company

estimates total media

revenues for HY 2016

decreased by -2% from HY’15 to $57.9B*

$27.5

$32.7

$0

$5

$10

$15

$20

$25

$30

$35

HY 2015 HY 2016

Digital Ad Revenue Growth (HY 2015 vs. HY 2016)

19%


Highlights: Mobile Surges to Nearly Half All Revenue… Video and Social Also Up

6

Mobile ad revenue, up 89% to $15.5 billion, now accounts for nearly half (47%) of internet ad revenue for the first half of 2016

Total video ad revenue (mobile + desktop) is up 51% to $3.9 billion

Total social media revenue (mobile + desktop), across all formats and platforms, is up 57% to $7 billion, growing by over 50% every half year since 2012


Mobile Search… Mobile Video… Mobile Banner: All Up

7

Mobile Search up 105% to $7.4 billion

Mobile Video up 178% to $1.6 billion

Mobile Banner up 62% to $6 billion


Mobile Advertising Revenue Growth:First Half Year 2016 Revenue Nearly Double that of First Half 2015

8

$1.2$3.0

$5.3

$8.2

$15.5

$3.4

$7.1

$12.4

$7.1

FY'12 FY '13 FY '14 FY '15 HY'16

1st Half Year 2nd Half Year

US Mobile Ad Revenue ($ Billions)First Half Year, Full Year and % YoY Growth

8

Growth

1HY: 145%

FY: 110%$2.1

$4.0

$20.7

Growth

1HY: 89%

FY: ?

$7.1

$12.5

Growth

1HY: 54%

FY: 66%

Note: Half Year totals accurately reflect the sum of half year totals as rounded to two decimal places.

$?

$?

Growth

1HY: 75%

FY: 76%


Video, Display, and Search Grow Across Screens; Triple-Digit Growth for Video and Search on Mobile

9

Video:

Total digital video ad revenue (mobile + desktop) is up 51% to $3.9 billion

Video now accounts for 12% of internet ad revenue for the first half of 2016, up from 9% in HY 2015

Mobile video has nearly tripled (178%) to $1.6 billion in HY 2016 from $0.6 billion in the previous year

Desktop video is up 13% to $2.3 billion in HY 2016 from $2 billion a year ago

Display:

Total display-related advertising* (mobile + desktop) is up 26% to $13.9 billion and accounts for 43% of all internet ad revenue

Total banner ads, specifically, are up 18% to $10 billion in HY 2016 and account for nearly 1 in 3 (31%) internet ad dollars

Display-related dollars are also shifting to mobile: Mobile display is up 78% to $7.6 billion while desktop display is down 7% to $6.3 billion

Total banner ads show a similar pattern, up 62% to $6 billion in mobile but down 15% to $4 billion in desktop

Search:

Total search revenue (mobile + desktop) is up 19% to $16.3 billion and accounts for half (50%) of all internet ad revenue

Search revenue is shifting to mobile: Mobile search grows 105% to $7.4 billion while desktop search is down 12% to $8.9 billion in HY 2016

*Display-related advertising refers to banners (banners, rich media, and sponsorships) and video.


Total Ad Revenue (Mobile + Desktop) Has Grown by Double-Digit Percentages in Video, Banner, and Search

10

$ B

illio

ns

$2.6

$8.5

$13.7

$3.9

$10.1

$16.3

Total Digital Video Total Banner* Total Search

HY 2015 HY 2016

Total Digital Ad Revenue (Mobile + Desktop) Growth (HY 2015 vs. HY 2016)

18%Growth

from

HY’15

51%Growth

from

HY’15

19%Growth

from

HY’15

*Total Banner includes banners, rich media, and sponsorships


Social Media Advertising Revenue, Lifted by Mobile, Has Grown Over 50% in Every Half Year Since 2012

11

$2.9

$4.5

$7.0

$10.9

$?

FY'12 FY '13 FY '14 FY '15 HY '16

1st Half Year 2nd Half Year

$4.4

$6.4

$7.0

$?

US Social Media Ad Revenue ($ Billions)Across Formats and Devices

First Half Year, Full Year and % YoY Growth

11

Growth

1HY: 50%

FY: 53%

$2.6

$2.9

Growth

1HY: 51%

FY: 55% Growth

1HY: 58%

FY: 57%

$4.1

$1.9$1.2

$1.7

Growth

1HY: 57%

FY: ?%

Note: Half Year totals accurately reflect the sum of half year totals as rounded to two decimal places.


Mobile, At 47% of All Digital Revenue, Changes Formats Distribution

12

31%

12%

50%

8%

Combined Digital Formats* (Mobile + Desktop)

Total Banner

Total Digital Video

Total Search

Total Other

12%

7%

27%

7%

47%

Desktop Formats* (with Mobile Separated)

Desktop Banner

Desktop Video

Desktop Search

Desktop Other

Mobile

First Half 2016 Ad Revenue by Format: New Distribution with Total Digital Revenues

Mobile Display and Search Revenue Impacts Total Format Share

43% ofCombined DigitalRevenue is Display-Related

*Display-related formats include banners (banners, rich media, and sponsorships) and video. Banner includes banner, sponsorship, and rich media advertising. Other includes lead gen, classifieds, and unspecified other.Amounts may not equal 100% due to rounding.


$27.5 $32.7Internet

First Half 2016 Ad Revenue Growth: Digital vs. Top Non-Digital Media

13

Total Ad Revenue First Half 2015 vs. First Half 2016 ($ Billions)

$7.3

$2.9

$4.9

$12.6

$27.1

$6.9

$3.0

$4.4

$13.0

$27.0

Magazine

Radio

Newspaper

Cable TV

Broadcast TV

First Half 2016

First Half 2015

Percent

YoY Change

19%

-1%

4%

-10%

3%

-5%Note: The total US advertising market includes other segments not charted here. Broadcast TV includes Network, Syndicated, Spot, and Spanish

Language Network TV advertising revenue. Cable TV includes National Cable Networks, Local Cable, and Spanish Language Cable TV advertising

revenue. Radio includes Network, and Spot Radio advertising revenue. Newspaper includes Local, National, and Sunday Supplement. Magazine

includes Local and National.

Source: Nielsen HY 2016, Oct. 2016

+


Q2 2016 Highlights


Q2 2016 Revenue Compared With Q2 2015

15

$ B

illio

ns

Total Media Ad Revenue

Change

(Q2 2015 vs. Q2 2016)

According to Nielsen,

total media revenues

decreased by -3% from Q2 2015 to Q2 2016

to $29B*

$14.3

$16.9

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

Q2 2015 Q2 2016

Digital Ad Revenue Growth (Q2 2015 vs. Q2 2016)

18%

*The Nielsen Company, MonitorPlus (Standard Calendar, Total includes B2B, National Internet (Display only),

FSI Coupons), Oct. 2016


$14.3 $16.9Internet

Q2 2016 Ad Revenue Growth: Digital vs. Top Non-Digital Media

16

Total Ad Revenue Q2 2015 vs. Q2 2016 ($ Billions)

$4.0

$1.5

$2.5

$6.5

$13.0

$3.8

$1.6

$2.3

$6.7

$12.8

Magazine

Radio

Newspaper

Cable TV

Broadcast TV

Q2'16

Q2'15

Percent

YoY Change

18%

-2%

4%

-9%

3%

-5%

Note: The total US advertising market includes other segments not charted here. Broadcast TV includes Network, Syndicated, Spot, and Spanish

Language Network TV advertising revenue. Cable TV includes National Cable Networks, Local Cable, and Spanish Language Cable TV advertising

revenue. Radio includes Network and Spot Radio advertising revenue. Newspaper includes Local, National, and Sunday Supplement. Magazine

includes Local and National.

Source: Nielsen HY 2016, Oct. 2016


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

January February March April May June

Display and In-Stream Video Average CPM Comparison

All sites / All Categories Jan – Jun 2016

Display In-Stream

+3%

-2%

Average CPMs Six Month Trend: Display and In-Stream VideoAll sites / All Categories - CPM of All Buys Placed Within the Month (Jan – Jun 2016)

Source: WebCosts Database, SQAD.com18

SQAD Copyright(c) 2009-2016 SQAD LLC - All Rights Reserved


Average CPM Trend Across Eight Display CategoriesWeighted Average - CPM of All Buys Placed Within the Month (Jan – Jun 2016)

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

January February March April May June Jan - Jun Avg.

Eight Category Average Display CPM TrendJan – Jun 2016

Average of All Sites in Category for Reported Month

Finance/Insurance/Investment

Eight Category Average

Family & Lifestyles News & InformationEntertainment

Corporate Information

Search Engines / Portals & Communities

Automotive

Home and Fashion


19

Note: Category titles refer to Nielsen dictionary. Corporate information includes primarily ad networks.

Source: WebCosts Database, SQAD.com


$0.00

$25.00

$50.00

Eight Category Average Display CPM Trend Q1 and Q2 Comparison - 2016

CPM of all Buys Placed Within Quarter Weighted Average

1Q_16 2Q_16

Average Display CPM Quarterly Comparison in Eight Categories CPM of All Buys Placed Within Q1 and Q2 2016

• Seven Out of Eight Categories Showed an Increase From Q1 to Q2 2016


20Source: WebCosts Database, SQAD.com

Note: Category titles refer to Nielsen dictionary. Corporate information includes primarily ad networks.


Key Takeaways

20*Display-related advertising is defined as banner ads, video, rich media, and sponsorships.

Consumer usage shift to mobile reflected in ad dollar shift to mobile

● Nearly half of internet ad dollars in first half of 2016 were from mobile advertising

Ongoing double-digit growth across formats and platforms in digital persists in an otherwise flat or declining media market

Brand spend continues to rise:

● Combined digital video (mobile + desktop) accounts for 12% of ad revenue, up from 9% a year ago

• At $3.9 billion in HY 2016, up 51% from HY 2015

● Combined display-related advertising* revenue (mobile + desktop) accounts for 43% of internet ad revenue, up from 40% in HY 2015

• At $13.9 billion in HY 2016, up 26% from HY 2015

● Impression-based revenue up to 34% from 32% of total internet revenue

● CPMs have trended up over the last six months (according to SQAD’s WebCosts data)

And it’s all about mobile… in video, in search, in social, in banners


Questions?

Journalists and IAB members can ask questions at

any time during the presentations

Please type questions into the chat box on the WebEx

user interface

● Additional press questions can be

directed to Laura Goldberg:

[email protected]

● Additional questions from IAB members

can be directed to Kristina Sruoginis:

[email protected]

The presentations and report will be available for

download after the webinar at:


22



http://www.iab.com/adrevenuereport

THANK YOU

Reports (from 1996 to present) can be found at: https://www.iab.com/adrevenuereport


iab/pwc internet advertising revenue report · global entertainment and media outlook 2016 - 2020...

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