Tuesday, April 16, 2013
Internet Ad Revenues Again Hit Record-Breaking Double-Digit Annual Growth, Reaching Nearly $37 Billion, a 15% Increase Over 2011’s Landmark Numbers

Q4 2012 Surpasses $10 Billion, Marking a Nearly 15% Increase Over Q4 2011

Mobile Ad Revenues More than Double for the Second Year in a Row

NEW YORK, NY (April 16, 2013) — Digital advertising revenues climbed to a milestone high of $36.6 billion in 2012, according to the IAB Internet Advertising Revenue Report 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, released today by the Interactive Advertising Bureau (IAB) and prepared by PwC U.S., additionally 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:

Revenue (Ad Formats)

  Full Year 2011 Full Year 2012
  % $ % $
Search 46.5% $14,768 46.3% $16,916
Classifieds and Directories 8.1% $2,580 6.6% $2,430
Lead Generation 4.8% $1,522 4.6% $1,689
E-mail 0.7% $213 0.4% $156
Mobile 5.0% $1,596 9.2% $3,370
Display-related        
  -Digital Video Commercials 5.7% $1,809 6.4% $2,330
  -Ad banners / display ads 21.5% $6,811 21.1% $7,721
  -Sponsorships 3.5% $1,121 2.3% $845
  -Rich media 4.1% $1,315 3.0% $1,113
    Total display-related 34.8% $11,056 32.8% $12,009

 

Revenue (Pricing Models)

  Full Year 2011 Full Year 2012
  % $ % $
Impression-Based 31.3% $9,926 32.0% $11,709
Performance-based 64.6% $20,491 65.9% $24,093
Hybrid 4.2% $1,318 2.1% $768

 

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.

About the IAB
The Interactive Advertising Bureau (IAB) is comprised of more than 500 leading media and technology companies that are responsible for selling 86% of online advertising in the United States. On behalf of its members, the IAB is dedicated to the growth of the interactive advertising marketplace, of interactive’s share of total marketing spend, and of its members’ share of total marketing spend. The IAB educates marketers, agencies, media companies and the wider business community about the value of interactive advertising. Working with its member companies, the IAB evaluates and recommends standards and practices and fields critical research on interactive advertising. Founded in 1996, the IAB is headquartered in New York City with a Public Policy office in Washington, D.C. For more information, please visit www.iab.net.

About PwC US
PwC US helps organizations and individuals create the value they're looking for. We're a member of the PwC network of firms in 158 countries with more than 180,000 people. We're committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com/US.

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IAB Media Contact
Laura Goldberg
347.683.1859
[email protected]

PwC Media Contact
Steven Silber
646.471.4059
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