IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue...

44
IAB/PwC Internet Advertising Revenue Report 2015 Half Year and Q2 2015 Oct. 2015

Transcript of IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue...

Page 1: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

IAB/PwC Internet Advertising Revenue Report2015 Half Year and Q2 2015

Oct. 2015

Page 2: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

HY and Q2 2015 IAB/PwC Digital Ad Revenue Report

Agenda

2

Welcome

Half Year and Q2 2015 Digital Ad Revenue Highlights

Sherrill Mane, SVP Research, Analytics & Measurement, IAB

Detailed Analysis of IAB PWC Half Year and Q2 2015 Report

David Silverman, Partner, PriceWaterhouseCoopers

A Look at Digital Spend Drivers

Peter Stabler, Managing Director, Internet/Advertising Equity Research,

Wells Fargo Securities LLC

Q & A

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report

Page 3: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

Important Note on Q&A

p 3

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.

● 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:

http://www.iab.com/adrevenuereport

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report

Page 4: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

IAB/PwC Digital Ad Revenue Report Highlights

Oct. 2015

2015 Half Year and Q2 2015

4

Sherrill Mane SVP, Research, Analytics and Measurement, IAB

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report

Page 5: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

2015 First Half Year Digital Ad Revenue Highlights

“It’s not what you look at that matters,

it’s what you see.”

-- Henry David Thoreau

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report5

Page 6: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

Half Year 2015 Interactive Advertising Outpaces the Market

6

2015 first half US interactive ad revenues total $27.5 billion, marking the sixth consecutive year of double-digit first half year growth. This represents a 19% (or $4.4 billion) increase from 2014 first half of $23.1billion

Stellar revenue picture for digital ad revenue contrasts with small overall ad market declines reported by both Nielsen (-5%) and Kantar(-4%) over same time last year

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report

Page 7: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

Half Year 2015 Interactive Advertising Outpaces the Market

7

Key drivers of revenue growth Mobile soars, with 54% uptick to $8.2 billion total, now accounting for 30% of total

interactive ad revenue

Digital video continues double digit growth, up 35% since same time last year for a total of $2.0 billion

Across measured platforms and formats, the aggregate social advertising revenue now stands at $4.5 billion, up 51% over first half 2014

Some softness in display and sponsorships (-4%), with display at $3.9 billion and sponsorships now at $366 million

Similar patterns prevail for 2nd quarter 2015 internet ad revenue, up 23% over same time in 2014, to a total of $14.3 billion

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report

Page 8: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

HY 2015 Year Over Year Revenue Growth

8

$ B

illio

ns

Sources: IAB Internet Advertising Revenue Report, 2015 First Half Year and 2nd Quarter Report; The Nielsen Company, MonitorPlus

(Standard Calendar, Total includes B2B, National Internet (Display only), FSI Coupons), Oct. 2015; Kantar Press Release Oct. 2015

The Nielsen Company

estimates total media

revenues decreased

5% over First Half

2015 to $59.1B;

Kantar Media

estimates a 4% decrease.

$23.1

$27.5

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

HY 2014 HY 2015

Total Media Ad Revenue Growth

(HY 2014 vs. HY 2015)

Digital Ad Revenue Growth (HY 2014 vs. HY 2015)

19%

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report

Page 9: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

First Half Year Revenue Track: Double-Digit Growth For 5 Years

9

$12,127

$14,941$17,028

$20,066

$23,091

$27,481

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

1HY '10 1HY '11 1HY '12 1HY '13 1HY '14 1HY'15

Source: IAB Internet Advertising Revenue Reports, First Half Year 2010-2015

US Digital Ad Revenue ($ Millions)First Half Year and % YoY Growth

+23%

+14%+18%

+15%

+19%

Page 10: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

HY 2015 Ad Revenue Growth Digital vs. Top Non-Digital Media

10

-3%

7%

1%

15%

Total Ad Revenue HY 2014 vs. HY 2015 ($Billions)

$7.6

$2.8

$5.9

$25.7

$13.0

$7.3

$2.9

$4.9

$24.9

$12.7

Magazine

Radio

Newspaper

Network TV

Cable TV

2015

2014

Source: Nielsen HY 2015 Oct. 2015

+Source: PWC IAB First Half Year and Q2 2015 Internet Advertising Revenue Report, Oct. 2015

$23.1 $27.5Internet

Percent

YoY Change

19%

-7%

-3%

-16%

1%

-4%

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.

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report

+

Page 11: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

Mobile Advertising Revenue Track ShowsExplosive Growth

11

$0.6 $1.2

$3.0

$5.3

$8.2

$0.6$1.6

$3.4

$7.1

FY '10 FY'11 FY'12 FY '13 FY '14 HY '15

1st Half Year 2nd Half Year

Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015

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

11

Growth

FY: 149%

Growth

1HY: 95%

FY: 111%

$1.0$2.1

$12.5

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report

Growth

1HY:

54%

$4.0

$7.1

Growth

1HY:145%

FY: 110%

Growth

1HY: 75%

FY: 76%

*Full year totals accurately reflect the sum of half year totals as rounded to two decimal places.

Page 12: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

Digital Video Advertising on a Growth Trajectory, FH Year Revenue More than Tripled Since 2010

12

FY '10 FY'11 FY'12 FY '13 FY '14 HY'15

1st Half Year 2nd Half Year

Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015

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

12

Growth

1HY: 47%

FY:

29%

$2.2

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report

Growth

1HY:

35%

Growth

1HY:

24%

FY: 19%

Growth

1HY:

18%

FY: 29%

Growth

1HY: 13%

FY: 17%

$3.3B

$2.8B

$2.3B

$1.8B

$1.4B

$0.6B $0.9B $1.0B $1.3B $1.5B $2.0B

$0.8B

$0.9B

$1.3B

$1.5B

$1.8B

Page 13: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

Social Media Advertising Revenue Grows Over 50% Every Half Year Measured

13

$2.9

$4.5

$7.0

$4.4

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

1st Half Year 2nd Half Year

Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015

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

13

Growth

1HY: 50%

FY: 53%

$2.6 $2.2

$2.9

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report

Growth

1HY:

51%Growth

1HY: 58%

FY: 57%

$4.1

$1.9$1.2

$1.7

Page 14: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

Q2 2015 Revenue Compared With Q2 2014

14

$ B

illio

ns According to Nielsen, total media

revenues decreased 4% from

Q2 2014 to Q2 2015 to 29.7B.

Kantar Media estimates a

4% decrease to $38.0B.

$11.7

$14.3

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

Q2 2014 Q2 2015

Total Media Ad Revenue Change

(Q2 '14 vs. Q2 '15)

Digital Ad Revenue Growth (Q2 '14 vs. Q2 '15)

23%

Sources: IAB Internet Advertising Revenue Report, 2015 First Half Year and 2nd Quarter Report; The Nielsen Company, MonitorPlus

(Standard Calendar, Total includes B2B, National Internet (Display only), FSI Coupons), Oct. 2015; Kantar Press Release Oct. 2015

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report

Page 15: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

Q2 2015 Ad Revenue Growth Digital vs. Top Non-Digital Media

15

-3%

7%

1%

15%

Total Ad Revenue Q2 ‘14 vs. Q2 ‘15 ($Billions)

$4.2

$1.5

$3.0

$7.0

$13.0

$4.0

$1.5

$2.5

$6.5

$13.0

Magazine

Radio

Newspaper

Cable TV

Network TV

Q2 '15

Q2 '14

Source: PWC IAB Full Year and Q2 2015 Internet Advertising Revenue Report, Oct. 2015

$11.7 $14.3Internet

Percent

YoY Change

23%

0%

-8%

-17%

1%

-4%

†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.

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report

Page 16: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

$-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

1Q_13 2Q_13 3Q_13 4Q_13 1Q_14 2Q_14 3Q_14 4Q_14 1Q_15 2Q_15

2013 – Q2 2015

Finance / Insurance / Investment

Automotive

Home and Fashion Family & Lifestyles

News & Information Corporate Information Search Engines / Portals & Communities

Entertainment

SQAD Copyright(c) 2009-2015 SQAD LLC - All Rights Reserved

Display: Eight Category Avg. CPM Trend Weighted Average - August 2015 Release - CPM of All buys Placed Within the Quarter

Page 17: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

WebCosts Display Composite Fifty Average CPM, Half Year 2015 - Fifty Same-Site Comparative Report

17SQAD Copyright(c) 2009-2015 SQAD LLC - All Rights Reserved

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

$11.00

$12.00

$13.00

$14.00

2013 2014 2015

2013 Average CPM: $11.61

2014 Average CPM: $11.35

2015 Average CPM: 6 months: $11.67

30

17

30

5

10

15

20

25

30

35

1

Composite Fifty 2015 SIx Month Comparison With 2014 Year Avg. CPM

Up

Down

Flat

Page 18: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

Key Takeaways

18

*Note: Display-related ad formats are defined as: banner ads, digital video commercials, rich media, and sponsorships.

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report

Brand spend continues to rise:

• CPMs up

• Digital video continues to grown significantly (+35%)

• Revenue associated with impression based advertising up 13% and holding a one third share as it has for some time now

• Hybrid (impression and performance based) advertising up 89% over same time last year

• $4.3 billion of mobile revenue, more than half of its total, is coming from display and video

Dollars moving from other media into digital, all forms of digital

• Revenue growth way ahead of the overall market continues, unabated

• Mobile likely garnering incremental spend from other media, digital media and “experimental” budgets

Positive effects of improved measurement, viewable inventory and combatting fraud becoming noticeable

• Rising CPMs likely offset inventory supply changes due to implementation of viewability, especially for display

Page 19: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

IAB/PwC Internet Ad Revenue Report Detailed Findings

Oct. 2015

2015 Half Year and Q2 2015

19

David Silverman

Partner, PriceWaterhouseCoopers

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report

Page 20: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwC

IAB internet advertising revenue report

2015 first six-months results

www.pwc.com

www.iab.net

Any trademarks included are trademarks of their respective owners and are not affiliated with, nor endorsed by, PricewaterhouseCoopers LLP.

Page 21: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwCPwC

Agenda

21

October 2015

Survey methodology

2015 first six-months results

First six-months and quarterly trends

Advertising formats

Social media

Pricing models

Industry category spending

About PwC

Page 22: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwCPwC

Survey Methodology

22

October 2015

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 websites, 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.

• Acquires supplemental data 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.

Page 23: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwCPwC

Half year revenues totaled …

23

October 2015

In b

illi

on

s

$23.1

$27.5

HY 2014 HY 2015Source: IAB Internet Advertising Revenue Report, HY 2015

Page 24: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwCPwC 24

October 2015

Half year revenues totaled $27.5 billion in 2015

Online advertising revenue increased 19.0% in HY 2015.

In b

illi

on

s

$23.1

$27.5

HY 2014 HY 2015

19.0%

Source: IAB Internet Advertising Revenue Report, HY 2015

Page 25: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwCPwC 25

October 2015

2015 second quarter revenues totaled ….

In b

illi

on

s $11.7

$14.3

Q2 2014 Q2 2015

Source: IAB Internet Advertising Revenue Report, HY 2015

Page 26: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwCPwC 26

October 2015

2015 second quarter revenues totaled $14.30 billion

Revenue in Q2 2015 was 22.5% higher than in Q2 2014.

In b

illi

on

s $11.7

$14.3

Q2 2014 Q2 2015

22.5%

Source: IAB Internet Advertising Revenue Report, HY 2015

Page 27: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwCPwC 27

October 2015

Strong Growth between Q1 2015 and Q2 2015

In b

illi

on

s

$13.2

$14.3

Q1 2015 Q2 2015

Source: IAB Internet Advertising Revenue Report, HY 2015

Page 28: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwCPwC 28

October 2015

Strong Growth between Q1 2015 and Q2 2015

Revenue in Q2 2015 was $1.1 billion higher than in Q1 2015.

In b

illi

on

s

$13.2

$14.3

Q1 2015 Q2 2015

8.5%

Source: IAB Internet Advertising Revenue Report, HY 2015

Page 29: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwCPwC

$0

$2

$4

$6

$8

$10

$12

$14

$16

Q2 2015 revenues were the highest on record at,

$14.3 billion

Source: IAB Internet Advertising Revenue Report, HY 2015

29

October 2015

Since 2010, a strong seasonal trend has emerged for internet advertising revenuesQuarterly growth comparison, 1996–HY 2015

In b

illi

on

s

’97 ’98 ’99 ’09’00

’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’10 ’11 ’12 ’13 ’14’96 HY ’15

Page 30: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwCPwC

Source: IAB Internet Advertising Revenue Report, HY 2015

30

October 2015

First six-months 2015 shows record revenues Historical revenue mix, first half vs. second half

In b

illi

on

s

$3.3 $4.6 $5.8 $7.9 $10.0 $11.5 $10.9 $12.1$14.9 $17.0

$20.1$23.1

$27.5

$4.0$5.0

$6.8

$9.0

$11.2$11.9 $11.8

$13.9

$16.8

$19.5

$22.7

$26.4

?

$0

$10

$20

$30

$40

$50

$60

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Last 6 months

First 6 months

* CAGR: Compound Annual Growth Rate

Page 31: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwCPwC

$10.1

$1.5

$0.9

$8.2

$2.0

$3.8

$0.4 $0.7

11%14%

2%

54%

35%

-4% -4%-1%

-10%

0%

10%

20%

30%

40%

50%

60%

$-

$2

$4

$6

$8

$10

Search Classifieds &Directories

LeadGeneration

Mobile Digital VideoCommercials

Banners Ads Sponsorship Rich Media

HY 2015 Revenue HY 2015 vs. HY 2014 % Growth

$10.1

Source: IAB Internet Advertising Revenue Report, HY 2015

31

October 2015

Mobile shows the strongest growthAdvertising formats – HY 2015 results and growth rates

In b

illi

on

s

Page 32: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwCPwC 32

October 2015

Historical trends in internet advertising formatsRevenue share by major ad formats, 2006–HY 2015

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Search Mobile Banner Ads Digital Video Classifieds LeadGeneration

Sponsorship

2006 2007 2008 2009 2010 2011 2012 2013 2014 HY 2015

% o

f to

tal

re

ve

nu

e

Source: IAB Internet Advertising Revenue Report, HY 2015

Page 33: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwCPwC 33

October 2015

Mobile represents a significant percentage of advertising formats

For the half year in 2015, Mobile revenue totaled $8.2 billion

37%

25%8%

44%

52%

4%

30%

Search Display Other

Mobile Search Mobile Display Mobile Other

Source: IAB Internet Advertising Revenue Report, HY 2015

Page 34: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwC

Historical Mobile format trendsMobile format ad revenue by category, 2003–HY 2015

52% 52% 51%

45% 44%46% 46%47%

50%52%

2% 2% 2%5% 4%

0%

10%

20%

30%

40%

50%

60%

1H 2013 2H 2013 1H 2014 2H 2014 1H 2015

Search Display Other

% o

f to

tal

re

ve

nu

e

Source: IAB Internet Advertising Revenue Report, HY 2015October 2015

34

Page 35: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwC

Distributing Mobile across formats demonstrates its importance to Search and Display

37%

25%

8%

30%

Search Display Other Mobile

35

October 2015

Formats – HY 2015(Mobile separated)

Source: IAB Internet Advertising Revenue Report, HY 2015

Page 36: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwC

Distributing Mobile across formats demonstrates its importance to Search and Display

37%

25%

8%

30%

Search Display Other Mobile

36

October 2015

50%

40%

10%

Search Display Other

Formats – HY 2015(Mobile separated)

Formats – HY 2015(Mobile included)

Source: IAB Internet Advertising Revenue Report, HY 2015

Page 37: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwCPwC

$1.2

$1.7$1.9

$2.6$2.9

$4.1

$4.4

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

1H 2012 2H 2012 1H 2013 2H 2013 1H 2014 2H 2014 1H 2015

CAGR* 53%

Social media demonstrates continued growthSocial media ad revenues, 2012 – HY 2014

37

October 2015

In b

illi

on

s

* CAGR: Compound Annual Growth RateSource: IAB Internet Advertising Revenue Report, HY 2015

Page 38: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwCPwC 38

October 2015

Pricing modelsInternet ad revenues by pricing model, HY 2014 vs. HY 2015

34%

65%

1%

HY 2014

Impression-based Performance-based

Hybrid

32%

66%

2%

HY 2015

Impression-based Performance-based

Hybrid

Total – $23.1 billion Total – $27.5 billion

Source: IAB Internet Advertising Revenue Report, HY 2015

Page 39: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwC

Historical pricing model trendsInternet ad revenues by pricing model, 2005–HY 2015

46% 48%

45%

39%37%

33%31% 32% 33% 34%

32%

41%

47%

51%

57%59%

62%65% 66% 65% 65% 66%

13%

5% 4% 4% 4% 5% 4%2% 2% 1% 2%

0%

10%

20%

30%

40%

50%

60%

70%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 HY2015

CPM Performance Hybrid

% o

f to

tal

re

ve

nu

e

Note: Pricing model definitions may have changed over the time period depicted both within the survey process and as interpreted by respondents

Source: IAB Internet Advertising Revenue Report, HY 2015October 2015

39

Page 40: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwC

Internet ad revenues by major industry category$23.1 B in HY 2014 vs. $27.5 in HY 2015

21%

13%12%

9% 9%

7% 7%

5% 5%4%

22%

13% 13%

9% 9%

6%7%

5% 5%4%

Retail FinancialServices

Auto Telecom LeisureTravel

PackagedGoods

Tech /Computing

Media Pharma &Healthcare

Entertain-ment

1H 2014 1H 2015%

of

tota

l r

ev

en

ue

† Amounts do not total to 100% as minor categories are not displayed.Source: IAB Internet Advertising Revenue Report, HY 2015

October 2015

40

Page 41: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

PwCPwCOctober 2015

For information, contact one of the following PwC professionals:New York

David SilvermanPartner, Assurance [email protected]

Russ SapienzaPartner, Advisory [email protected]

Stephanie FaskowManager, Advisory [email protected]

41

Technology and Entertainment, Media, and Communications practicesContacts

Page 42: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

IAB/PwC Internet Ad Revenue Report A Look at Digital Spend Drivers

Oct. 2015

2015 Half Year and Q2 2015

42

Peter Stabler

Managing Director, Internet/Advertising Equity Research,

Wells Fargo Securities LLC

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report

Page 43: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

Questions?

p 43

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:

http://www.iab.com/adrevenuereport

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report

Page 44: IAB/PwC Internet Advertising Revenue Report€¦ · Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015 US Social Media Ad Revenue ($ Billions) First Half

THANK YOU

FOLLOW-UP QUESTIONS:

Additional questions from IAB members can be directed to Kristina Sruoginis:

[email protected]

Additional press questions can be directed to Laura Goldberg:

[email protected]

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

IAB 2015 Half Year and Q2 2015 Internet Advertising Revenue Report