IAB Internet Advertising Revenue Report · 2017-01-25 · PwC Source: IAB Internet Advertising...

IAB Internet Advertising Revenue Report 2012 Full Year Results

www.pwc.com www.iab.net

PwC Source: IAB Internet Advertising Revenue Report, 2012

April 16, 2013

Agenda

Survey methodology

2012 full year results

Full year and quarterly trends

Advertising formats

Pricing models

Industry category spending

Advertising market share by media

About PwC

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April 16, 2013

Survey Methodology

Survey Scope The IAB Internet Advertising Revenue Report is part of an ongoing IAB mission to provide an accurate barometer of Internet advertising growth.

To achieve differentiation from existing estimates and accomplish industry-wide acceptance, key aspects of the survey include:

• Obtaining historical data directly from companies generating Internet/online/mobile advertising revenues;

• Making the survey as inclusive as possible, encompassing all forms of Internet/online advertising, including Web sites, consumer online services, ad networks, mobile devices and e-mail providers; and

• Ensuring and maintaining a confidential process, only releasing aggregate data.

Methodology Throughout the reporting process, PwC:

• Compiles a database of industry participants selling Internet/online and mobile advertising revenues.

• Conducts a quantitative mailing survey with leading industry players, including Web publishers, ad networks, commercial online service providers, mobile providers, e-mail providers and other online media companies.

• Supplemental Data is acquired through the use of publicly disclosed information

• Requests and compiles several specific data items, including monthly gross commissionable advertising revenue by industry category and transaction.

• Identifies non-participating companies and applies a conservative revenue estimate based on available public sources.

• Analyzes the findings, identifies and reports key trends.

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April 16, 2013

Annual revenues totaled $36.6 billion in 2012

Online advertising revenue increased 15.2% in 2012.

4

In b

illi

ons

$31.74

$36.57

2011 2012


April 16, 2013

Annual revenues totaled $36.6 billion in 2012

Online advertising revenue increased 15.2% in 2012.

5

In b

illi

ons

$31.74

$36.57

2011 2012

15.2%


April 16, 2013

Fourth quarter revenues totaled $10.31 billion in 2012

Revenue in Q4 2012 was 14.9% higher than in Q4 2011.

6

In b

illi

ons

$8.97

$10.31

Q4 2011 Q4 2012


April 16, 2013

Fourth quarter revenues totaled $10.31 billion in 2012

Revenue in Q4 2012 was 14.9% higher than in Q4 2011.

7

In b

illi

ons

$8.97

$10.31

Q4 2011 Q4 2012

14.9%


April 16, 2013

Strong Growth between Q3 FY12 and Q4 FY 12

Revenue in Q4 2012 was $1.07 billion higher than Q3 2012.

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In b

illi

ons

$9.24 $10.31

Q3 2012 Q4 2012


April 16, 2013

Strong Growth between Q3 FY12 and Q4 FY 12

Revenue in Q4 2012 was $1.07 billion higher than Q3 2012.

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In b

illi

ons

$9.24 $10.31

Q3 2012 Q4 2012

11.6%


April 16, 2013

$0

$2

$4

$6

$8

$10

$12

A historical perspective of internet advertising Quarterly growth comparison, 1996–2012

10

In b

illi

ons

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$10

Q4 2012 revenues crossed $10 billion for the first time


April 16, 2013

2012 shows record revenues Historical revenue mix, first half vs. second half

11

In b

illi

ons

$3.3 $4.6 $5.8 $7.9

$10.0 $11.5 $10.9 $12.1 $14.9

$17.0

$4.0 $5.0

$6.8

$9.0

$11.2 $11.9 $11.8

$13.9

$16.8

$19.5

$0

$5

$10

$15

$20

$25

$30

$35

$40

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Last 6 months

First 6 months


April 16, 2013

Mobile shows the strongest growth Advertising formats - 2012 results and growth rates

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$16.9

$2.4 $1.7 $0.2

$3.4 $2.3

$7.7

$0.8 $1.1

14.5%

-5.8%

11.0%

-26.8%

111.2%

28.8%

13.4%

-24.6% -15.4%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

$-

$2

$4

$6

$8

$10

$12

$14

$16

$18

Search Classifieds &Directories

LeadGeneration

Email Mobile Digital VideoCommercials

Ad Banners /Display Ads

Sponsorship Rich Media

2012 Revenue 2012 vs. 2011 % Growth

In b

illi

ons


April 16, 2013

Historical trends in internet advertising formats Revenue share by major ad formats, 2006–2012

0%5%

10%15%20%25%30%35%40%45%50%

Search DisplayBanners

Classifieds Rich Mediaand Digital

Video

LeadGeneration

Sponsorship Mobile

2006 2007 2008 2009 2010 2011 2012

13

% o

f to

tal r

even

ue


April 16, 2013

Pricing models shift towards performance Internet ad revenues by pricing model, 2011 vs. 2012

31%

65%

4%

2011

Impression-based Performance-basedHybrid

32%

66%

2%

2012

Impression-based Performance-basedHybrid

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Total – $31.7 billion Total – $36.6 billion


April 16, 2013

Historical pricing model trends Internet ad revenues by pricing model, 2005–2012

Note: Pricing models definitions may have changed over time period depicted, both within the survey process and definitional by survey respondents.

46% 48%

45%

39% 37% 33% 31% 32%

41% 47%

51%

57% 59% 62%

65% 66%

13%

5% 4% 4% 4% 5% 4% 2%

0%

10%

20%

30%

40%

50%

60%

70%

2005 2006 2007 2008 2009 2010 2011 2012

CPM Performance Hybrid

15

% o

f to

tal r

even

ue


April 16, 2013

Internet ad revenues by major industry category $31.7 B in 2011 vs. $36.6 B in 2012

22%

13% 12%

11%

9% 8%

6% 5% 5%

4%

20%

13%

11% 12%

8% 9%

7% 6%

5% 4%

Retail FinancialServices

Telecom Auto Tech /Computing

LeisureTravel

PackagedGoods

Pharma &Healthcare

Media Entertain-ment

2011 2012

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% o

f to

tal r

even

ue

†

† Amounts do not total to 100% as minor categories are not displayed.


April 16, 2013

Advertising market share by media Advertising spend † of key media in 2012 (In billions)

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$0.7

$0.8

$7.5

$16.1

$19.4

$22.8

$32.5

$36.6

$39.6

Cinema

Video Games

Out of Home

Radio

Newspaper

Magazines ***

Cable Television **

Internet

Broadcast Television *

† The total U.S. advertising market includes other segments not charted here. * Broadcast Television includes Network, Syndicated and Spot television advertising revenue. ** Cable Television includes National Cable Networks and Local Cable television advertising revenue. *** Magazine includes Consumer and Trade magazines.

Sources: IAB Internet Advertising Revenue Report; PwC


April 16, 2013

Historical advertising market share Advertising spend of key media from 2005-2012 (In billions)

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$0$5

$10$15$20$25$30$35$40$45$50

2005 2006 2007 2008 2009 2010 2011 2012

Broadcast Television * Cable Television ** Newspaper Radio

In b

illi

ons

* Broadcast Television includes Network, Syndicated and Spot television advertising revenue. ** Cable Television includes National Cable Networks and Local Cable television advertising revenue.

Source: PwC; IAB Internet Advertising Revenue Report, 2012


April 16, 2013

Historical advertising market share Advertising spend of key media from 2005-2012 (In billions)

19

In b

illi

ons

* Broadcast Television includes Network, Syndicated and Spot television advertising revenue. ** Cable Television includes National Cable Networks and Local Cable television advertising revenue.

Source: PwC; IAB Internet Advertising Revenue Report, 2012

$0$5

$10$15$20$25$30$35$40$45$50

2005 2006 2007 2008 2009 2010 2011 2012

Broadcast Television * Internet Cable Television ** Newspaper Radio

PwC April 16, 2013

PwC New Media Group As business, accounting, and tax advisors to many of the world’s leading Entertainment, Media, and Communications (EMC) and Technology (Tech) companies, PwC (www.pwc.com) has an insider’s view of trends and developments driving the industry. With approximately 1200 practitioners serving EMC and Tech clients in the United States, PwC is deeply committed to providing clients with industry expertise and resources. In recent years, our pioneering work in EMC and Tech has included developing strategies to leverage digital technology, identifying new sources of financing, and marketplace positioning in industries characterized by consolidation and transformation. Our experience reaches across all geographies and segments of the EMC and Tech sectors, including broadband, wireless, the Internet, music, film, television, publishing, advertising, gaming, theme parks, computers and networking, and software. With thousands of practitioners around the world, we are always close at hand to provide deep industry expertise and resources.

PwC’s New Media Group was the first practice of its kind at a Big Four firm. Currently located in New York, Los Angeles, Boston, Seattle and the Bay Area, our New Media Group includes accounting, tax and consulting professionals who have broad and deep experience in the three areas that converge to form new media: advanced telecommunications, enabling software and content development/distribution.

Our services include:

• Business assurance services

• Web audience measurement and advertising delivery auditing and advisory

• IAB Measurement Certification Compliance auditing

• Privacy policy structuring, attestation and compliance advisory

• Mergers & Acquisition assistance

• Tax planning and compliance

• Capital sourcing and IPO assistance

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PwC April 16, 2013

PwC New Media Group Contacts

For information about our New Media Group, contact one of the following PwC professionals: New York David Silverman Partner, Assurance Services 646.471.5421 [email protected] York Russ Sapienza Partner, Advisory Services 646.471.1517 [email protected] Michael Altschul Manager, Advisory Services 646.471.4903 [email protected]

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www.pwc.com/e&m

This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. © 2013 PwC. All rights reserved. “PwC” and “PwC US” refer to PricewaterhouseCoopers LLP, a Delaware limited liability partnership, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. This document is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

IAB Internet Advertising Revenue Report · 2017-01-25 · PwC Source: IAB Internet Advertising...

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