Digital ad revenue grew at a faster rate during the first half of 2017 than it did over the same time period last year, according to the Interactive Advertising Bureau (IAB). Other key findings from the IAB report included:
- Total digital ad revenue growth accelerated year-over-year (YoY). Digital ad revenue for H1 2017 reached $40 billion, a 23% YoY increase from $32.7 billion. Meanwhile, US digital ad revenue grew 19% YoY in H1 2016. The acceleration was driven by growth in video, banner, and other formats, as well as search’s declining share of total digital ad revenue.
- Digital video ad revenue growth decelerated YoY. Total digital video ad spend, which includes desktop and mobile, grew 36% YoY to $5.2 billion in H1 2017. Mobile, which jumped 65% YoY to $2.6 billion, largely drove this growth. Desktop, on the other hand, grew just 15% to $2.6 billion. H1 2017 marked the first time that mobile video ad spend reached parity with desktop video ad spend.
- Audio was the fastest-growing ad format, however, it still accounts for only a small fraction of total digital ad spend. Total audio ad revenue, which comes from ad-supported audio programming available to consumers over the internet, grew 42% YoY to $603 million in H1 2017. Audio’s growth rate was higher than that of video, banner, and search. However, the $603 million in revenue means audio represented just 2% of digital ad revenue for H1 2017.
- There’s an increasing number of local and small to medium-sized businesses (SMBs) that purchase digital advertising. About 7 million SMBs, businesses that generate $50 million or less annually, buy digital advertising, according to Borell Associates, per IAB. Eighty-percent of these business (about 5.5 million) use self-service ad platforms like those of Facebook or Twitter. Moreover, 63% (over 4 million) of SMBs plan to increase their digital ad spend over the next year. Just 15% of SMBs that purchase digital advertising revealed that they purchase programmatically.