US internet ad spend ‘grew 15% in 2012’

17/04/2013

Internet ad revenues in the US hit record-breaking double digita growth in 2012, reaching nearly $37bn, with mobile ad revenues leading the growth, according to new figures.

The data, from the IAB US and Price Waterhouse Coopers, indicates that Digital advertising revenues climbed to a milestone high of $36.6 billion in 2012, 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 also 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.

Here are the results from the full year in comparison with last year’s numbers:

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IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PwC. The results are considered the most accurate measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertisements on the internet.

The survey includes data concerning online advertising revenues from Web sites, commercial online services, free email providers, and all other companies selling online advertising. The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first and third quarters. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information.

A copy of the full report is available at: www.iab.net/AdRevenueReport.

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