Mobile Contributes 40% To Q4 2015 Online Advertising Revenue


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According to the Interactive Advertising Bureau (IAB), the total online advertising revenue in the United States reached $59.6 billion in 2015, a 20% increase from 2014. The study, released by PricewaterhouseCoopers, reports the sixth consecutive year of double-digit, year-over-year growth for online advertising. This is almost unheard of in any industry.

 

Needless to say, advertisers are flocking to where consumers are spending most of their time; and that's mobile. Advertisers are realising that the era of dictating what consumers see is over; with the advent of ad blockers, online streaming and attention spans shorter than that of a goldfish, consumers are the ones controlling what they see. Thus, directing marketing budgets towards ads that are not relevant or noticed by consumers is simply budget wasted.

 

Mobile revenues totaled $6.9 billion in Q4 2015 alone, making up a whopping 40% of total online revenues in that quarter, up 77% from Q4 2014.

 

Additionally, the top 10 leading ad-selling companies accounted for 75% of online revenues in Q4 2015, with companies ranked 11th through 25th making up 9%. The concentration of top-10 revenue has remained relatively constant over the past decade, fluctuating between 69-75% despite the emergence of major players amongst them.

 

Meanwhile, online advertising on mobile and desktop platforms reached a total revenue of $17.4 billion in Q4 2015, a 23% increase from Q4 2014. However, non mobile Search saw a 37% decrease, accounting for 32% in the Q4 2015 which is a drop from previous years. With the ease and convenience of mobile devices, Search-related revenues have shifted away from desktop computers over to mobile devices. For instance, mobile shoppers are increasingly consulting their mobile devices at every stage of their decision-making process. Even when consumers are physically shopping in-store, they are likely to be searching for information to compare products and prices on mobile. Mobile Search revenues totaled $5.6 billion in Q4 2015, a 6% increase from Q4 2014.

 

The breakdown of specific mobile ad formats is depicted below, with mobile display making up the majority. Mobile display includes "banner ads, digital video, digital audio, sponsorships and rich media advertising served to mobile devices". It is likely that the growth of mobile advertising will continue to rise, as marketers are seeing very real and measurable results.

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References
http://www.adweek.com/news/technology/mobile-spearheads-growth-60-billion-digital-advertising-industry-170963
http://www.iab.com/insights/iab-internet-advertising-revenue-report-conducted-by-pricewaterhousecoopers-pwc-2/

 

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