IAB/PwC Internet Advertising Revenue Report

Transcription

1 IAB/PwC Internet Advertising Revenue Report 2015 Full Year and Q April 21, 2016

2 2015 Full Year and Q IAB/PwC Digital Ad Revenue Report Highlights Apr Sherrill Mane SVP, Research, Analytics and Measurement, IAB 2

3 2015 Full Year Digital Ad Revenue Highlights To improve is to change; to be perfect is to change often. -- Winston Churchill 3

4 : 20 Years of IAB Internet Ad Revenue Reporting Happy 20 th Birthday!!!

5 In billions 20 Years of Tracking Internet Ad Revenue Quarterly Internet Ad Revenue Trends, in Billions Formats Added to Report: Banners, Sponsorships, Interstitials, , Other 2016 $59.6B First Internet Ad Revenue Report Search Added Video Added Mobile Added Mobile Subformats Added $267M Rich Media, Lead Gen & Classifieds Added Social Media Added

6 Annual Interactive Ad Revenue Exhibits Double Digit for the Sixth Consecutive Year 2015 US interactive ad revenue totals $59.6 billion This represents an increase of 20.4% over last year and equals $10.1 billion Stellar annual revenue picture for digital advertising contrasts with small overall ad market declines reported by Nielsen (-5 %) Key drivers of revenue growth: Mobile exceeds $20 ($20.7) billion, up 66% and now accounting for 35% of total interactive ad revenue Digital video continues double digit growth, up 30% since last year for a total of $4.2 billion, an increase of nearly $1 billion Across measured platforms and formats, aggregate social media advertising revenue closed the year at $10.9 billion, up 55% from

7 Full Year 2015 Interactive Advertising Outpaces the Market Softness in (desktop) display, sponsorships and rich media: Display/Banners now at $7.7 billion (-4%), and sponsorships at $649 million, rich media at $1.3 billion Migration to mobile is further supported by 80% growth in all mobile display related advertising including mobile video, banners, etc., closing the year at $11 billion Similar patterns prevail for 4th quarter 2015 internet ad revenue, up 23% overall from same time in 2014, to a total of $17.4 billion 7

8 $ Billions FY 2015 Year Over Year Revenue Digital Ad Revenue (FY 2014 vs. FY 2015) $70.0 $60.0 $50.0 $40.0 $30.0 $ % $59.5 Total Media Ad Revenue (FY 2014 vs. FY 2015) The Nielsen Company estimates total media revenues decreased 5% over 2015 to $119.8B. $20.0 $10.0 $0.0 FY 2014 FY Sources: IAB Internet Advertising Revenue Report, 2015 First Half Year and 2 nd Quarter Report; The Nielsen Company, MonitorPlus (Standard Calendar, Total includes B2B, National Internet (Display only), FSI Coupons), Apr. 2016

9 Mobile Advertising Revenue Continues 1st Half Year US Mobile Ad Revenue ($ Billions) First Half Year, Full Year and % YoY 2nd Half Year $20.7 $12.4 1HY: 75% FY: 76% $12.5 1HY: 54% FY: 66% 9 9 $0.6 FY: 149% $1.6 1HY: 95% FY: 111% $3.4 $2.1 $1.0 $0.6 $1.2 1HY:145% FY: 110% $7.1 $3.0 $5.3 $8.2 FY '10 FY'11 FY'12 FY '13 FY '14 FY '15 *Full year totals accurately reflect the sum of half year totals as rounded to two decimal places. Source: IAB Internet Advertising Revenue Reports, Full and Half Year $4.0 $7.1

10 Digital Video Advertising on a Trajectory, FH Year Revenue More than Tripled Since 2010 $1.4B $0.8B 1st Half Year 1HY: 47% FY: 29% $1.8B $0.9B US Video Ad Revenue ($ Billions) First Half Year, Full Year and % YoY 1HY: 18% FY: 29% 2nd Half Year $2.3B $1.3B $2.2 1HY: 24% FY: 19% $2.8B $1.5B 1HY: 13% FY: 17% $3.3B $1.8B 1HY: 35% FY: 30% $4.2B $2.2B $0.6B $0.9B $1.0B $1.3B $1.5B $2.0B FY '10 FY'11 FY'12 FY '13 FY '14 HY' Source: IAB Internet Advertising Revenue Reports, Full and Half Year

11 Social Media Advertising Revenue Grows Over 50% Every Year Measured US Social Media Ad Revenue ($ Billions) First Half Year, Full Year and % YoY 1st Half Year 2nd Half Year $10.9 $7.0 $6.4 $2.9 $1.7 $1.2 1HY: 50% FY: 53% $4.5 $2.6 $1.9 $2.2 1HY: 58% FY: 57% $4.1 $2.9 1HY: 51% FY: 55% $4.4 FY'12 FY '13 FY '14 HY ' Source: IAB Internet Advertising Revenue Reports, Full and Half Year

12 $ Billions Q Revenue Compared With Q Digital Ad Revenue (Q4 '14 vs. Q4 '15) $20.0 $ % $17.4 Total Media Ad Revenue Change (Q4 '14 vs. Q4 '15) $16.0 $14.0 $12.0 $14.2 According to Nielsen, total media revenues decreased 3% from Q to Q to 33.9B. $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 Q Q Sources: IAB Internet Advertising Revenue Report, 2015 First Half Year and Q4Report; The Nielsen Company, MonitorPlus (Standard Calendar, Total includes B2B, National Internet (Display only), FSI Coupons), Apr. 2016

13 Q Ad Revenue Digital vs. Top Non-Digital Media Internet Broadcast TV Cable TV Total Ad Revenue Q4 14 vs. Q4 15 ($Billions) $15.5 $15.2 $6.4 $6.8 $14.3 $11.7 Percent YoY Change 15% 23% 7% 2% -6% Newspaper $2.7 $3.0-3% -13% Radio Magazine $1.6 $1.5 $4.4 $4.5 Q4 '15 Q4 '14 6% 1% -3% 13 Source: Nielsen FY 2015, Apr Source: PWC IAB First Half Year and Q Internet Advertising Revenue Report, Apr The total U.S. advertising market includes other segments not charted here. Broadcast Television includes Network and Syndicated and Spot television advertising revenue. Cable Television includes National Cable Networks and Local Cable television advertising revenue. Radio includes Network and Spot Radio advertising revenue. Newspaper includes Local, National, Sunday Supplement. Magazine includes Local, National.

14 Display: Eight Category Avg. CPM Trend Weighted Average - CPM of All buys Placed Within the Quarter - Dec $50.00 $45.00 WebCosts Eight Category Average CPM Q Q $40.00 $35.00 Finance / Insurance / Investment $30.00 $25.00 Automotive $20.00 Entertainment $15.00 Family & Lifestyles Home and Fashion $10.00 $5.00 News & Information Corporate Information Search Engines / Portals & Communities $- 1Q_13 2Q_13 3Q_13 4Q_13 1Q_14 2Q_14 3Q_14 4Q_14 1Q_15 2Q_15 3Q_15 4Q_15 SQAD Copyright(c) SQAD LLC - All Rights Reserved

15 WebCosts Display Composite Fifty Average CPM, Full Year Fifty Same-Site Comparative Report $15.00 $14.00 $13.00 $12.00 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $ Q4 Average CPM Compared to 2014 Year Average. CPM Up Down Flat WebCosts Display Composite Fifty Average CPM, 2013 Through Average CPM: $ Average CPM: $ Average CPM Full Year: $ January February March April May June July August September October November December 15 SQAD Copyright(c) SQAD LLC - All Rights Reserved

16 Display and In-Stream Video Quarterly CPM Comparison WebCosts Database, All sites / All Categories $30.00 $25.00 Display and In-Stream Video Quarterly CPM Comparison All sites / All Categories WebCosts Database $20.00 $15.00 $10.00 $5.00 $0.00 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Display Average SQAD WebCosts Copyright(c) SQAD LLC - All Rights Reserved. In-Stream Average

17 Key Takeaways Brand spend continues to rise: CPMs up Digital video continues to grown significantly (+30%) Revenue associated with impression based advertising up 21% and holding a one third share as it has for some time now $11 billion of mobile revenue, nearly half of its total, is coming from display-related mobile formats including video Dollars moving from other media into digital, all forms of digital Unabated growth in a flat top media market Mobile likely garnering incremental spend from other media, digital media and through experimental budgets 17 *Note: Display-related ad formats are defined as: banner ads, digital video commercials, rich media, and sponsorships.

18 Key Takeaways Positive effects of improved measurement, viewable inventory and combatting fraud becoming noticeable Rising CPMs along with demand likely offset inventory supply changes Programmatic buying contributing to new supply demand relationships 18 *Note: Display-related ad formats are defined as: banner ads, digital video commercials, rich media, and sponsorships.

19 2015 Full Year and Q IAB/PwC Digital Ad Revenue Report Highlights Apr Sherrill Mane SVP, Research, Analytics and Measurement, IAB 19

20 THANK YOU FOLLOW-UP QUESTIONS: Additional questions from IAB members can be directed to Kristina Sruoginis: Additional press questions can be directed to Laura Goldberg: Reports (from 1996 to present) can be found at: