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IAB/PwC Digital Ad Revenue Report Highlights
Apr. 2016
2015 Full Year and Q4 2015
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Sherrill Mane SVP, Research, Analytics and Measurement, IAB
IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
2015 Full Year Digital Ad Revenue Highlights
3
“To improve is to change;
to be perfect is to change often.”
-- Winston Churchill
IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
1996 – 2016: 20 Years of IAB Internet Ad Revenue Reporting
Happy 20th Birthday!!!
IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
20 Years of Tracking Internet Ad Revenue
5
In b
illi
on
s
’97 ’98 ’99 ’09’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’10 ’11 ’12 ’13 ’14’96
First Internet Ad Revenue
Report
1996 1997 1998 2000 2001 2002 2004 2005 2006 2007 2008 2009 2010 2011 20122003 2013
Mobile Subformats
Added
Mobile Added
1996
$267M
VideoAdded
Formats Added to Report:Banners,
Sponsorships, Interstitials, Email, Other
Social MediaAdded
Quarterly Internet Ad Revenue Growth Trends, in Billions 1996–2015
1999
Search Added
Rich Media, Lead Gen & Classifieds
Added
2014 2015
IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
2016
$59.6B
’15
Annual Interactive Ad Revenue Exhibits Double Digit Growth for the Sixth Consecutive Year
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2015 US interactive ad revenue totals $59.6 billion
This represents an increase of 20.4% over last year and equals $10.1 billion
Stellar annual revenue picture for digital advertising contrasts with small overall ad market declines reported by Nielsen (-5 %)
Key drivers of revenue growth: Mobile exceeds $20 ($20.7) billion, up 66% and now accounting for 35% of total
interactive ad revenue
Digital video continues double digit growth, up 30% since last year for a total of $4.2 billion, an increase of nearly $1 billion
Across measured platforms and formats, aggregate social media advertising revenue closed the year at $10.9 billion, up 55% from 2014
IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
Full Year 2015 Interactive Advertising Outpaces the Market
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Softness in (desktop) display, sponsorships and rich media: Display/Banners now at $7.7 billion (-4%), and sponsorships at $649 million, rich media at $1.3 billion
Migration to mobile is further supported by 80% growth in all mobile display related advertising including mobile video, banners, etc., closing the year at $11 billion
Similar patterns prevail for 4th quarter 2015 internet ad revenue, up 23% overall from same time in 2014, to a total of $17.4 billion
IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
FY 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), Apr. 2016
The Nielsen Company
estimates total media
revenues decreased
5% over 2015 to
$119.8B.
$49.5
$59.5
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
FY 2014 FY 2015
Total Media Ad Revenue Growth
(FY 2014 vs. FY 2015)
Digital Ad Revenue Growth (FY 2014 vs. FY 2015)
20%
IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
Mobile Advertising Revenue Growth Continues
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$0.6 $1.2
$3.0
$5.3
$8.2
$0.6
$1.6$3.4
$7.1
FY '10 FY'11 FY'12 FY '13 FY '14 FY '15
1st Half Year 2nd Half Year
Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015
US Mobile Ad Revenue ($ Billions)First Half Year, Full Year and % YoY Growth
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Growth
FY: 149%
Growth
1HY: 95%
FY: 111%
$1.0$2.1
$12.5
IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
Growth
1HY: 54%
FY: 66%
$4.0
$7.1Growth
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.
$20.7
$12.4
Digital Video Advertising on a Growth Trajectory, FH Year Revenue More than Tripled Since 2010
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FY '10 FY'11 FY'12 FY '13 FY '14 HY'15
1st Half Year 2nd Half Year
Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2010-2015
US Video Ad Revenue ($ Billions)First Half Year, Full Year and % YoY Growth
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Growth
1HY: 47%
FY: 29%
$2.2
IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
Growth
1HY: 35%
FY: 30%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
$4.2B
$2.2B
Social Media Advertising Revenue Grows Over 50% Every Year Measured
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$2.9
$4.5
$7.0
$10.9
FY'12 FY '13 FY '14 HY '15
1st Half Year 2nd Half Year
$4.4
$6.4
Source: IAB Internet Advertising Revenue Reports, Full and Half Year 2012-2015
US Social Media Ad Revenue ($ Billions)First Half Year, Full Year and % YoY Growth
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Growth
1HY: 50%
FY: 53%
$2.6$2.2
$2.9
IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
Growth
1HY: 51%
FY: 55% Growth
1HY: 58%
FY: 57%
$4.1
$1.9$1.2
$1.7
Q4 2015 Revenue Compared With Q4 2014
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$ B
illio
ns According to Nielsen, total media
revenues decreased 3% from
Q4 2014 to Q4 2015 to 33.9B.
$14.2
$17.4
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
Q4 2014 Q4 2015
Total Media Ad Revenue Change
(Q4 '14 vs. Q4 '15)
Digital Ad Revenue Growth (Q4 '14 vs. Q4 '15)
23%
Sources: IAB Internet Advertising Revenue Report, 2015 First Half Year and Q4Report; The Nielsen Company, MonitorPlus (Standard
Calendar, Total includes B2B, National Internet (Display only), FSI Coupons), Apr. 2016
IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
Q4 2015 Ad Revenue Growth Digital vs. Top Non-Digital Media
13
-3%
7%
1%
15%
Total Ad Revenue Q4 ‘14 vs. Q4 ‘15 ($Billions)
$4.5
$1.5
$3.0
$6.8
$15.2
$4.4
$1.6
$2.7
$6.4
$15.5
Magazine
Radio
Newspaper
Cable TV
Broadcast TV
Q4 '15
Q4 '14
$11.7 $14.3Internet
Percent
YoY Change
23%
2%
-6%
-13%
6%
-3%
IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
Source: Nielsen FY 2015, Apr. 2016
+Source: PWC IAB First Half Year and Q4 2015 Internet Advertising Revenue Report, Apr. 2016
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.
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1Q_13 2Q_13 3Q_13 4Q_13 1Q_14 2Q_14 3Q_14 4Q_14 1Q_15 2Q_15 3Q_15 4Q_15
WebCosts Eight Category Average CPM
Q1 2013 – Q4 2015
Finance / Insurance / Investment
Automotive
Home and Fashion Family & Lifestyles
News &
Information Corporate Information Search Engines / Portals & Communities
Entertainment
SQAD Copyright(c) 2009-2016 SQAD LLC - All Rights Reserved
Display: Eight Category Avg. CPM Trend Weighted Average - CPM of All buys Placed Within the Quarter - Dec. 2015
15SQAD Copyright(c) 2009-2016 SQAD LLC - All Rights Reserved
$0.00
$1.00
$2.00
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$6.00
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$14.00
$15.00
January February March April May June July August September October November December
WebCosts Display Composite FiftyAverage CPM, 2013 Through 2015
2013 2014 2015
2013 Average CPM: $11.61
2014 Average CPM: $11.35
2015 Average CPM Full Year: $12.09
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10
10
20
30
40
Up Down Flat
2015 Q4 Average CPM Compared to 2014 Year
Average. CPM
WebCosts Display Composite Fifty Average CPM, Full Year 2015 - Fifty Same-Site Comparative Report
SQAD WebCosts Copyright(c) 2009-2016 SQAD LLC - All Rights Reserved.
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$10.00
$15.00
$20.00
$25.00
$30.00
Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4
Display and In-Stream Video Quarterly CPM Comparison
All sites / All Categories WebCosts Database
Display Average In-Stream Average
Display and In-Stream Video Quarterly CPM Comparison WebCosts Database, All sites / All Categories
Key Takeaways
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*Note: Display-related ad formats are defined as: banner ads, digital video commercials, rich media, and sponsorships.
IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
Brand spend continues to rise:
• CPMs up
• Digital video continues to grown significantly (+30%)
• Revenue associated with impression based advertising up 21% and holding a one third share as it has for some time now
• $11 billion of mobile revenue, nearly half of its total, is coming from display-related mobile formats including video
Dollars moving from other media into digital, all forms of digital
• Unabated growth in a flat top media market
• Mobile likely garnering incremental spend from other media, digital media and through “experimental” budgets
Key Takeaways
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*Note: Display-related ad formats are defined as: banner ads, digital video commercials, rich media, and sponsorships.
IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
Positive effects of improved measurement, viewable inventory and combatting fraud becoming noticeable
Programmatic buying contributing to new supply demand relationships
• Rising CPMs along with demand likely offset inventory supply changes
IAB/PwC Digital Ad Revenue Report Highlights
Apr. 2016
2015 Full Year and Q4 2015
19
Sherrill Mane SVP, Research, Analytics and Measurement, IAB
IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report
THANK YOU
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Reports (from 1996 to present) can be found at: http://www.iab.net/adrevenuereport
IAB 2015 Full Year and Q4 2015 Internet Advertising Revenue Report