US online ad revenues increased by 19% year-over-year to reach $27.5 billion in the first half (H1) of this year, according to the latest revenue report [pdf] from the IAB and PricewaterhouseCoopers (PwC). Revenues have now grown by double-digits on a year-over-year basis for 21 consecutive quarters, with Q2’s year-over-year growth of 22.5% being the strongest in 4 years. It’s an interesting result in light of all the buzz about ad blocking, a conversation in which the IAB itself is firmly entrenched. No mention of ad blocking in the IAB revenue report, though, or of fraud, which reportedly accounts for 1 of every $3 spent on digital advertising.
Instead the report’s findings generally demonstrate the same trends as in recent reports: more spending on mobile, social, and video.
Mobile continues to be the fastest-growing format. Revenues were up 54% year-over-year during H1, reaching $8.2 billion. That rapid growth propelled mobile’s share of revenues to 30%, up from 15% during the year-earlier period.
Non-mobile search accounted for 37% share of revenues, down from 43% in the year-earlier period, as search revenues migrated from desktop to mobile devices. Search accounted for 44% of mobile revenues, such that across platforms search comprised almost exactly half of all digital ad spending.
Non-mobile display-related advertising accounted for 25% of revenues in H1, down from 30% a year earlier as its 5% year-over-year rise trailed the overall average. Display/banner ads comprised 14% of total revenues, while digital video comprised 7% share (with revenues up 35% year-over-year), followed in the display category by rich media (2%) and sponsorships (1%).
Meanwhile, display-related advertising accounted for 52% share of mobile revenues. As such, display-related revenues accounted for roughly 40% of revenues across spending.
Other Findings:
- Social media advertising increased by 51% year-over-year to $4.4 billion.
- The top 10 ad-selling companies accounted for 72% of total revenues during Q2, up from 71% a year earlier.
- Retail remains the largest industry by online ad spend, comprising 22% of revenues during the first half of the year, up a point from last year. Financial services (13%), auto (13%), telecom (9%) and leisure travel (9%) were the next-largest.
- 66% of revenues were priced on a performance basis in H1, up a point from a year earlier.
