Online Ad Revenue Hits Record Breaking Growth Figures Second Year In a Row

For the second year in a row, mobile ad revenues have more than doubled.

According to the recently released IAB Internet Advertising Revenue Report, digital advertising revenues climbed to a high of $36.6 billion in 2012. This significant number marks a 15% growth over 2011’s end of year total ($31.7 billion) which was also a previous record.

However the momentous growth figures don’t stop there! 2012 was also a big year for mobile and it received a triple digit growth year over year from 2011. Overall in 2012 mobile advertising spend saw a rise of 111% to $3.4 billion from 2011’s total of $1.6 billion. Overall mobile accounted for 9% of the total internet ad revenue throughout 2012.

The increase of smartphone ownership has certainly contributed to the rise in mobile ad spend. The ease of internet access that smartphones have presented means that there is increased opportunity for ad placement and reach. Touch screen phone features have also allowed marketers to be more creative and adventurous with their campaign which means adverts have become more interactive and engaging.

Mobile is also our main source of information, it stays with us from the moment we wake to the moment we sleep and everything in between. We reach for our mobiles to set alarms, check transport times, weather, emails and to be entertained by video, social networks and games. The mobile phone is the device we reach for most frequently which makes it an important part of any successful digital marketing strategy.

Digital video, a rich media format of advertising was also a big winner in 2012. When compared to the total of $1.8 billion in 2011, there was a remarkable increase of 29% in 2012 to bring the total spend for digital video advertising to $2.3 billion.

The figures for online advertising are quite remarkable and will one day reflect a pivotal moment in history as marketers switch to online advertising. The rate of growth comparing 2011 to 2012 is astounding and shows that the uptake on digital advertising is gathering pace and here at Ad Spruce we predict that figures will be even better in 2013.

One factor which marketers should take into consideration is that there is a clear multi-screen usage amongst consumers. Marketing strategies should incorporate a mixture of screens into their campaigns in order to effectively reach today’s consumers.

The IAB Internet Advertising Revenue Report is sponsored by IAB and conducted independently by the New Media Group of PwC. Results from the report are thought of as the most precise measurement of interactive advertising revenues because the data is collected directly from data supplied by companies selling ad spots online.

The study compiled data from a range of different online companies including free email providers, web sites and commercial online services, all selling online advertising.

The IAB Internet Advertising Revenue Report is issued twice a year. To see a full copy of the IAB Internet Advertising Revenue Report you can find it here:

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