Monday 22 April 2013

Digital advertising spend rose to $36.6 billion in the US in 2012, including $3.4 billion for mobile

"Digital advertising revenues climbed to a milestone high of $36.6 billion in 2012, according to the IAB Internet Advertising Revenue Report for the full-year of 2012. That historic number marks a 15 percent rise over 2011’s full-year number, which itself had been the highest on record, at $31.7 billion. The report, released today by the Interactive Advertising Bureau (IAB) and prepared by PwC U.S., additionally reveals that 2012’s fourth quarter numbers, at $10.3 billion, rose by 14.9 percent from $9 billion in the final quarter of 2011. These 2012 Q4 figures represent an uptick of 11.6 percent over Q3 2012, which came in at $9.2 billion.
Other highlights include:
For the second year in a row, mobile achieved triple-digit growth year-over-year. The past year saw the mobile category surge 111 percent to $3.4 billion, pivoting off of 2011’s record-breaking 149 percent year-over-year rise to $1.6 billion. Mobile accounted for 9 percent of total internet ad revenue in 2012.
Digital video, a component of display-related advertising, brought in $2.3 billion, marking a significant year-over-year increase of 29 percent in 2012, compared to $1.8 billion in 2011.
Search revenues in 2012 totaled $16.9 billion or 46 percent of 2012 revenues, up 14.5 percent from $14.8 billion in 2011.
Display-related advertising revenues in 2012 totaled $12 billion or 33 percent of 2012 revenues, up almost 9 percent from $11 billion in 2011.
Retail advertisers continue to represent the largest category of internet ad spending, accounting for 20 percent in 2012, followed by financial services, which is responsible for 13 percent of the year’s revenues.
“These record-breaking numbers represent a paradigm shift when it comes to marketers recognizing the role a multiplicity of screens plays in effectively reaching today’s consumers,” said Randall Rothenberg, President and CEO, IAB. “Mobile, in particular, soared due to its ubiquity and intrinsic ability to serve as a powerful digital dashboard that travels with you from morning commute to nighttime video viewing and beyond. The significant increase in digital video also underscores the importance of the upcoming Digital Content NewFronts and the vitality that sight, sound and motion play for both consumers and advertisers in the digital era.”
“As Smartphones get smarter, cellular networks get faster and user penetration of smart mobile devices increases, the combination of personalization and location will have tremendous appeal to marketers,” said David Silverman, Partner, PwC U.S. “We are just at the tip of the iceberg.”
“For the third consecutive year, digital media ad revenue has racked up double-digit growth, demonstrating the strength of interactive advertising and marketers’ commitment to be where consumers are,” said Sherrill Mane, Senior Vice President, Research, Analytics, and Measurement, IAB."

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