Amazon is expected to make over $20 billion in ad revenues in 2020

 "Amazon’s advertising division is pulling in big bucks as its marketplace merchants jockey for position amid the pandemic-fueled eCommerce boom.

The tech behemoth is tracking to post its first $100 billion quarter, with an estimated $21 billion coming from annual advertising dollars alone, the Financial Times reported on Tuesday (Dec. 29), citing FactSet data.

Amazon’s crowded digital marketplace has caused merchants to step up their advertising on the site in order to be more visible in search results. The eCommerce giant's advertising business is currently growing faster than its retail, cloud and Prime subscription divisions.

The 47 percent increase in advertising dollars over last year has helped Amazon become a formidable rival to Google search, which has dominated online advertising."

Source:  PYMNTS, citing a report in the Financial Times, 29th December 2020

Digital ad expenditure in Europe reached €64,8bn in 2019

"IAB Europe, the leading European-level industry association for the digital advertising and marketing ecosystem, announced at its virtual Interact conference today that digital advertising grew 12.3 percent in 2019 to €64.8bn, driven by strong growth in out-stream video, mobile and social spend. On average €4bn has been added to the digital advertising market every year since 2006.
2020 Digital Advertising Forecast
Given the impact that COVID-19 that had on the industry’s operations and investments, the 2019 results were accompanied by a 2020 forecast for digital investment by IAB Europe’s Chief Economist Dr. Daniel Knapp. In its April 2020 forecast, the IMF predicted that Covid-19 and the global lockdown will spark the worst economic recession since the Great Depression of the 1930s. Knapp modelled his forecasts on macroeconomic indicators, paired with industry data to estimate a decline of 16.3% for Europe (including the UK). However, Knapp highlighted that digital is looking to be the least affected advertising media, predicting a decline by -5.5% in 2020 in Europe compared to a stronger contraction (-21.3%) for other media.
2019 Digital Advertising Investment
The AdEx Benchmark study is the definitive guide to advertising expenditure in Europe, covering 28 markets, and is now in its fourteenth year. In 2019, a total of twenty-one markets experienced double-digit year-on-year growth.
Video grew by nearly 30 percent to almost €10bn; out-stream was the driving force behind this growth with an increase of 36 percent. In some markets out-stream experienced growth of more than 40 percent, for example Finland, Greece and the UK.
Social is fueling display growth across Europe, up 25.6 percent year-on-year with double-digit growth in all twenty-eight markets. Search remains the largest online advertising category in terms of revenue with a growth of 11.8 percent and a market value of €28bn. Total mobile ad spend grew by 24.9 percent in 2019 to exceed €30bn to account for nearly half (47 percent) of all digital ad spend in Europe.
[...]
The IAB Europe AdEx Benchmark study divides the digital ad market into three categories: Display, Search and Classifieds and Directories. Growth in these advertising formats has been underpinned by shifting uses in devices and changing consumption patterns.
[...]
CEE continues to dominate the growth in Europe and in 2019, as in 2018. The top five largest growth markets all came from the CEE region:
Serbia – 28.4 percent
Ukraine – 28.0 percent
Belarus – 25.2 percent
Croatia – 22.3 percent
Turkey– 19.1 percent

Top 10 rankings (by market size) are:
UK – €21.4bn
Germany – €9.4bn
France – €6.1bn
Russia – €4.9bn
Italy – €3.2bn
Spain – €3.2bn
Sweden – €2.3bn
Netherlands – €2.3bn
Switzerland – €1.8bn
Norway – €1.3bn"
Source:  Press release from IAB Europe, 3rd June 2020
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Digital ad spend across Europe grew to €55bn in 2018

"IAB Europe, the leading European-level industry association for the digital advertising ecosystem, announced at its annual Interact conference today in Warsaw that digital advertising grew 13.9 percent in 2018 to €55.1bn, driven by strong growth in video, mobile and social spend. This is the fastest growth since 2011 and has seen the market more than double in size since 2012.
The AdEx Benchmark study is the definitive guide to the state of the European digital advertising market, covering 28 markets, and is now in its thirteenth year. In 2018, a total of twenty-one markets saw double-digit year-on-year growth
Out-stream video and mobile both dominated results in 2018, as they both grew by double-digits in all twenty-eight markets in the study. Out-stream video grew by 44.7 percent on average, compared to in-stream at 19.7 percent. Overall, video grew by 30.9 percent, to €7.6bn, accounting for 33 percent of the display market.
Search remains the largest online advertising category in terms of revenue with a growth of 12.5 percent and a market value of €25bn.
Social is fueling display growth across Europe, growing 33.7 percent year-on-year and now accounts for 49 percent of display.
Total mobile ad spend grew by 31.4 percent in 2018, to €22.8bn, and now accounts for 41 percent of all digital ad spend across Europe.
[...]
The IAB Europe AdEx Benchmark study divides the digital ad market into three categories: Display, Search and Classifieds and Directories. Growth in these advertising formats has been underpinned by shifting uses in devices and changing consumption patterns. In 2018, Display has closed the gap with Search, growing by 17.5 percent to account for 42.2 percent of all spend.
[...]
In 2018, the top five largest growth markets all came from the CEE region:
Ukraine – 26.9 percent
Russia – 24.9 percent
Belarus – 23.6 percent
Czech Republic – 20.9 percent
Serbia – 20.1 percent
Norway entered the top 10 in 2018, with further gains by Spain and Sweden.
Top 10 rankings (by market size)
UK – €18.4bn
Germany – €7.2bn
France – €5.2bn
Russia – €4.1bn
Italy – €2.9bn
Netherlands – €2.2bn
Spain – €2.2bn
Sweden – €2.1bn
Switzerland – €2.0bn
Norway – €1.1bn"

Source:  Press release from IAB Europe, 4th June 2019

Mobile accounted for 51% of UK digital ad spend in 2018

"IAB UK, the trade association for digital advertising, has today announced the results of the latest IAB UK and PwC Digital Adspend study, which reveals UK advertisers spent £13.44billion on digital advertising in 2018.
The total ad spend figure is a 15 percent year-on-year increase and demonstrates continued confidence in the power of digital advertising.
For the first time ever, ad spend on smartphones has exceeded desktop accounting for 51 percent of the total spend, up from 45 percent in 2017. This is a year-on-year increase of £1.65bn.
These latest figures show that advertising spend now better reflects consumer behaviour, with recent UKOM audience data showing that people spend two thirds of their online time on smartphone1.
Beyond mobile, an additional driver of growth continues to be video, which accounts for 44 percent of the total display market. For the second year running, outstream (which includes social in-feed video) has exceeded pre-roll video2, accounting for 57 percent of all video advertising."
Source:  Press release from IAB UK, using data from the IAB & PwC, 24th April 2019

Amazon spent $8.2bn on marketing in 2018

"Amazon hiked its marketing spend by 30% to $8.2bn (£6.3bn) last year, making it a serious challenger to Procter & Gamble and Unilever as the world’s biggest advertiser.
The tech giant said in its annual report that its marketing costs "primarily consist of targeted online advertising, payroll and related expenses for personnel engaged in marketing and selling activities, and television advertising".
Amazon added that its marketing spend also includes promotional costs such as "commissions to third parties when their customer referrals result in sales" and "co-operative advertising arrangements with certain of our vendors and other third parties"."

Source:  Campaign, 6th February 2019

UK online ad spend rose to £6.4bn in H1 2018

"UK advertisers spent £6.4bn on digital advertising in the first half of 2018, according to the latest results of the IAB UK and PwC Digital AdSpend report.
In the first six months of 2018, there has been year-on-year growth of total digital advertising spend of 15%.
The overall display market remains healthy, with H1 year-on-year growth of 20%, taking it to £2.3bn. This growth was driven by Video, which saw the largest year-on-year increase of 40%, taking spend in the first six months to £967m. Non-video display inventory accounted for £1.3bn of spend in the first six months of 2018.
Search has grown 15% to £3.3bn, commanding 52% of total digital adspend, whilst classified remained flat at £726m.
With the maturation of the market, the half year figures are now reported for combined mobile and desktop adspend and the methodology has been updated accordingly. The 2018 full year report, due for publication in April 2019, will continue to provide a detailed analysis of formats and spends."
Source:  Press release from !AB UK using data from IAB & PwC, 10th October 2018

US Podcasting ad revenue exceeded $300m in 2017

"U.S. podcast ad revenue hit an estimated $314 million in 2017, an 86% increase from $169 million in 2016, according to findings from the Interactive Advertising Bureau (IAB) and PwC made available to Marketing Dive. The report, the IAB's second annual Podcast Revenue Study, forecasts that podcast revenue will reach $659 million by 2020, a 110% increase from 2017.
The preferred type of podcast ad was host-read, which made up two-thirds of podcast ads in 2017. Direct response ads accounted for 64.2% of campaign revenue, with brand awareness ads at 29.2%. Ads integrated or edited into programming made up 58% of the podcast ad inventory in 2017, up from 43.6% in the previous year."

Source:  Marketing Dive, 12th June 2018

Digital ad spend in Europe doubled from 2012 to 2017

"At its annual Interact conference today, IAB Europe announced that digital advertising grew 13.2% in 2017 to €48bn, driven by strong growth in social, mobile and video investment.
The AdEx Benchmark study is the definitive guide to the state of the European digital advertising market and is now in its twelfth year. A total of twenty markets grew double-digit. Mobile dominated with double-digit growth in all 27 markets in the study. Mobile display grew by more than 40% and now accounts for 42% of total display advertising whilst video now accounts for more than a quarter of total display. Social grew at a similar rate at 38% and increased its share of display whilst video grew by 4x the rate of non-video display at 35%. The growth in video is driven by out-stream advertising which experienced a 73.4% growth compared with in-stream at 6.9%.
[...]
The IAB Europe AdEx Benchmark study divides the digital ad market into three categories: Display, Search and Classifieds and Directories. Growth in these advertising formats has been underpinned by shifting uses in devices and changing consumption patterns.
Display advertising outperformed search and classifieds with a growth rate of 14.9% to a value of €19.3bn. Search is still the largest online advertising category in terms of revenue with a growth of 14.4% and a market value of €21.9bn.
[...]
The top 3 individual growth markets reveal strong growth in the CEE region:
Belarus – 33.9%
Serbia – 23.7%
Russia – 21.9%
There was also strong growth in the most mature markets (in line with or above the European average) such as the UK (14.3%), Norway (16.6%), Sweden (18.4%), Switzerland (12.5%) and Denmark (9.7%) demonstrating that maturity doesn’t hinder opportunity for further innovation and growth.
Top 10 rankings (by market size)
UK – €15.6bn
Germany – €6.6bn
France – €5.1bn
Russia – €3.3bn
Italy – €2.6bn
Sweden– €1.8bn
Netherlands – €1.8bn
Switzerland – €1.8bn
Spain – €1.8bn
Belgium – €1bn"

Source:  Data from the IAB & PwC, 23rd May 2018

UK digital ad spend rose 14% to £11.55bn in 2017

"Advertisers spent £476 million more on smartphone video ads in 2017, making it the fastest-growing online ad format, according to the latest Digital Adspend report by the Internet Advertising Bureau (IAB) UK and PwC.
This was a rise of 69% on 2016 and took total spend on the format to £1.17 billion. Video ad spend overall (including phones, computers and tablets) increased 47% to £1.61bn. Thus, 73% of all video spend now goes on smartphones.
Video contributed heavily to the total amount spent across all smartphone advertising rising by 37.4% to £5.2bn. As a result, 45% of all digital ad spend went on smartphones - compared to just 9% five years ago. However, the IAB's chief digital officer Tim Elkington noted "there's still significant room for smartphones share to grow" as they accounted for 59% of online time¹ in the final quarter of 2017.
Overall, total digital ad spend increased 14.3% to £11.55bn.
"People are spending more time online - specifically on smartphones. Digital has led to a change in consumer behaviour as people use their smartphone for a wider variety of things, be it listening to podcasts, learning a new skill or following stories on the likes of Snapchat and Instagram," says Elkington. "The ad community has responded to this change - particularly the growth of mobile and video - by developing dynamic ad products that fit seamlessly into their environment."
"While this data relates to 2017, before some of the recent headlines that have been dominating the industry, it's clear that there has been considerable momentum in the market. What stands out to us is the number of success stories we've seen across a diverse range of formats, from audio to sponsored content, and across all parts of the industry value chain. More than half of the companies submitting to the study this year are in growth, which points to a robust and competitive marketplace" said Tom Tryon, Strategy Manager at PwC.
Accompanying online YouGov data² produced specifically for the report reveals that in terms of online smartphone activities, listening to a podcast has seen the biggest rise amongst Smartphone users, with a 'net'² rise in popularity of 30% followed by viewing social media 'stories' (up 29%), reading news articles (up 24%) and learning a new skill (up 22%).
In terms of other ad formats:
Social media spend rose 38% to £2.39bn, or one in every five pounds spent on digital ads - 83% of social media budgets now go to smartphones
In-feed advertising rose 9% to £950m
Outstream video (up 94% to £900m) overtook pre/post-roll (up 11% to £671m) as the largest video format
80% of the £3.84bn spent on display advertising was traded programmatically - up from 72% in 2016 - 63% being traded through direct means, such as private marketplaces, rather than on open exchanges (17%)
Paid for search rose 16% to £5.82bn, classifieds fell -1% to £1.47bn"
Source:  Data from the IAB & PwC, 25th April 2018

Mobile ad spend is higher than TV ad spend in the UK

"The UK’s ad market reached a new milestone during the third quarter of 2017 as almost one in four pounds spent on advertising went to mobile, which posted year-on-year growth of 30.7% to £1.3bn, according to Advertising Association/WARC Expenditure Report data published today.
Total ad market growth was recorded at 3.5% year-on-year, with £5.4bn spent during Q3 – the 17th consecutive quarter of market expansion.
The report found that total spend on mobile (including display, search, and other formats such as SMS/MMS) was higher than TV spend for the first time. Yet TV remains the leading display channel.
“The latest data indicate that total mobile ad investment during the quarter was higher than that for TV for the first time – though the two channels serve different roles for advertisers,” said WARC’s Data Editor, James McDonald.
“While TV remains the largest display medium by some distance, mobile investment is being driven by advertisers looking to reach consumers via search results and social feeds.”
New data show that the vast majority of mobile display spend is being directed towards advertising on social media, which rose 44.7% year-on-year. This, coupled with rising spend on paid search, is driving sector growth, as early estimates for the full-year 2017 put total mobile adspend above £5bn.
The latest verified data resulted in an upgrade to 2017 full-year estimates, with total ad market growth now believed to have been +3.4%, 0.3 percentage points higher than the last AA/WARC projections in October 2017. Advertising expenditure is expected to grow by a further 2.8% this year.
Though total TV saw a slight decline (-0.8%) year-on-year during the third quarter, within this, video on demand spend posted healthy growth of 13.3%. TV spend across traditional and digital formats is thought to have returned to growth in the final quarter of last year, culminating in a preliminary estimate of -2.0% for 2017 as a whole, the first annual dip since 2009. However, total TV spending is expected to turn positive this year (+1.5%).
Among the other media channels covered by the report, national newsbrands’ digital revenues rose strongly in Q3, up 21.5% year-on-year. While this was not enough to offset print losses during the quarter, the total market contraction of 5.1% was the best performance in three years, suggesting a slight easing of the intense business pressures newsbrands are facing.
Elsewhere, direct mail recorded its strongest quarter in six and a half years, as spend rose 5.9% to reverse a prolonged downturn. Radio (+5.1% year-on-year) also had a strong quarter, though annual dips were seen in out of home (-0.8%), cinema (-8.4%) and magazine (-11.9%) spend."
Source:  Data from The Advertising Association and WARC, published 31st January 2018

Amazon's ad revenue is the same as Twitter and Snap combined

"Advertising is still just a small piece of Amazon’s growing empire. But “small” is relative. In 2017, the company’s ad business generated $2.8 billion, making it bigger than the ad platforms managed by Twitter ($2 billion) and Snap ($800 million). Only three online ad platforms outrank Amazon’s: Google, Facebook, and Oath.
The bulk of Amazon’s ad revenue is generated by placements within Amazon.com. For example, sellers pay to appear in search results, or display custom banners above the results. Some, like toy company Melissa & Doug, shell out additional dollars for custom Amazon home pages. But the retail conglomerate has also started to explore ad placements across the wider web, as well as within Alexa and Prime Video. Marketers, drawn by Amazon’s wealth of shopper data, have been eager to experiment. Last spring, WPP acquired an Amazon-focused consultancy."

Source:  FastCompany, 29th January 2018

UK digital ad spend rose 13.8% Y-o-Y to £5.56bn in H1 2017

"Driven by the rise in popularity of people watching online video, advertisers spent more on video ads than banner ads for the first ever time – according to the latest Internet Advertising Bureau UK / PwC Digital Adspend report.
In the first half of 2017, advertisers spent £699 million on video ads – a 46% year-on-year rise – whilst spend on banner ads increased by just under 2% to £685 million. Video is the fastest-growing ad format and now accounts for 35% of all spend going on display advertising.
The IAB’s CEO Jon Mew says, “The time people spend watching online video has grown tremendously over the last few years, so it’s little wonder that video is now the fastest-growing ad format as advertisers look to tap into the changing way people consume content.” 
The time people spend watching short video clips appears to have almost trebled over the last three years (Sept 2014 to Sept 2017): from 51 minutes to 2 hrs 21 minutes per week, according to YouGov data¹.
Within video advertising, spend on outstream2/social in-feed nearly doubled and is now the most popular format, accounting for 52% of video spend (£363 million), overtaking pre-and post-roll ads which account for 44% (£309 million).
Dave Counsell, Digital Trading Director, the7stars, said: “There’s no doubt that video is digital’s most important and powerful format. Growth in online consumption, improvements in measurement, quality of placements, targeting and creativity are now available alongside its unrivalled effectiveness. It’s an extremely exciting time to witness the strong results video is providing for advertisers.”
Display advertising as a whole grew 18% to £2 billion, whilst search grew 15% to £2.8 billion and classifieds remained flat at £692 million. Thus, overall digital ad spend grew 13.8% to £5.56bn in the first half of 2017.
With half of UK internet time now being spent on smartphones3, mobile’s share of digital ad spend has risen from 35% to 43%, or £2.37 billion. Mobile’s year-on-year growth was 38% and now accounts for 57% of all display ad spend, 70% of video spend and 83% of social media spend.
Ad spend on social media sites grew 42% to £1.05 billion, accounting for over half (53%) of the display ad market."

Source:  Data from the IAB & PwC, 17th October 2017

European digital ad spend rose to over €40bn in 2016

"At its annual Interact conference today, IAB Europe announced that online advertising grew 12.2% in 2016 to €41.8bn establishing itself as the dominant advertising medium in Europe.
The AdEx Benchmark study is the definitive guide to the state of the European online advertising market and is now in its eleventh year. The research demonstrates that online advertising continues to surpass TV advertising. All markets participating in the study recorded positive growth, a total of twenty markets grew double-digit for the third year running (three markets recording 30%+ growth. Mobile continues to drive the growth with both mobile display and mobile search seeing 50%+ growth in 2016. Mobile dominates across all markets with a 100%+ growth rate in some markets.
Mobile display now accounts for €5.4bn and continues to grow its share of the display market to 33.3%, with a growth rate of 53.3% compared with 2015.
Video which is considered as a key channel for delivering brand advertising campaigns, according to IAB Europe’s Attitudes to Digital Video Advertising report, continues to experience strong growth to a share of 18.2% of the total display market.
[...]
The IAB Europe AdEx Benchmark study divides the online ad market into three categories: Display, Search and Classifieds and Directories. Growth in these online advertising formats has been underpinned by shifting uses in devices and changing consumption patterns.
Display advertising outperformed other categories for the third year in a row with a growth rate of 13.8% and a value of nearly €16bn.
Search continues to be the largest online advertising category in terms of revenue with a growth of 12.9% and a market value of €19.1bn. It continues to be the largest online advertising format in terms of revenue.
[...]
Top 3 Individual growth markets were:
Romania – 36.9%
Slovenia – 32.2%
Ireland – 31.4%

Top 10 Rankings
UK – €14.2bn
Germany – €5.9bn
France – €4.2bn
Russia – €2.6bn
Italy -€2.3bn
Netherlands – €1.7bn
Spain – €1.6bn
Sweden – €€1.6bn
Belgium – €0.9bn
Switzerland – €0.9bn"

Source:  Press release from IAB Europe, 23rd May 2017

US digital ad spend rose to $72.5bn in 2016; >50% was mobile

"Mobile advertising accounted for more than half (51%) of the record-breaking $72.5 billion spent by advertisers last year, according to the latest IAB Internet Advertising Revenue Report, released today by the Interactive Advertising Bureau (IAB), and prepared by PwC US. The total represents a 22 percent increase, up from $59.6 billion in 2015. Mobile experienced a 77 percent upswing from $20.7 billion the previous year, hitting $36.6 billion in 2016.
Other highlights from the report include:
Digital video hit a record $9.1 billion in 2016, a 53 percent year-over-year rise from $5.9 billion in 2015
On mobile devices, video revenue skyrocketed, more than doubling—up 145 percent year-over-year—to nearly $4.2 billion
Social media advertising generated $16.3 billion last year, climbing 50 percent over 2015’s $10.9 billion
Search revenues reached nearly $35 billion in 2016, up 19 percent from $29.5 billion in 2015
Digital audio, measured for the first time in this report, brought in revenues of $1.1 billion in 2016
Retail, representing 21.3 percent of internet ad spend in 2016, Financial Services at 13.3 percent, and automotive at 12.5 percent, continue to have the largest category share, with Media (5.2%) picking up speed, up 13 percent over 2015
“Mobile fueled the internet economy in 2016, with advertisers showing their confidence in digital to achieve their marketing goals,” said Randall Rothenberg, President and CEO, IAB. “This increasing commitment is a reflection of brands’ ongoing marketing shift from ‘mobile-first’ to ‘mobile-only’ in order to keep pace with today’s on-the-go consumers.”
“In a mobile world, it is no surprise that mobile ad revenues now take more than half of the digital market share,” said David Doty, Executive Vice President and CMO, IAB. “Digital video’s powerful ability to attract engaged audiences is naturally attracting greater investments. Next week’s NewFronts presentations will showcase the latest in original digital video content, certain to spark even greater interest from marketers and media buyers.”
“Mobile, social, video, and programmatic trends combine to redefine the digital landscape, providing unprecedented access for advertisers to reach consumers,” said David Silverman, partner, PwC US. “Digital audio, generating $1.1 billion in 2016 speaks to the continued evolution of new formats that enable marketers to find audiences at home, behind their desks, or wherever they are.”"
Source:  IAB / PwC, 26th April 2017

UK Digital Ad Spend exceeded £10bn in 2016; Mobile up 51%

"17.3pc rise is highest annual growth rate for 9 years
• Mobile driving almost entire growth, up 51pc
• Mobile video the fastest growing ad format, up 103pc
Driven by advertisers’ need to tap into people’s rising use of mobile to watch content, digital advertising grew at its fastest rate for nine years – by 17.3pc to £10.3 billion in 2016 – according to the Internet Advertising Bureau UK / PwC Digital Adspend report. The last time annual growth was higher was 2007 (38pc).
As almost half (48pc) of UK internet time is now spent on smartphones, mobile ad spend rose 50.8pc to £3.87bn. Mobile now accounts for 38% of all digital ad spend, up from 4% just five years ago. However, it accounts for 63pc of video spend, 76pc of Content & Native (including social media news feeds) and 79pc of social media spend.
Mobile video is fastest-growing ad format
Spend on mobile video ads more than doubled (up 103pc) to £693 million – making it the fastest growing ad format. It accounts for 29pc of the total growth in digital ad spend.
The rise in mobile video ad budgets reflects online YouGov data showing that in the last six months, 54pc of British smartphone users watched video clips on their phone, with two-in-five of these saying they do more of this than a year ago. A significant number have also watched TV programmes (17pc) and films (11pc) on their smartphones. This behaviour is much more prevalent among 18-24 year olds, with 75pc watching short clips, 44pc watching TV and 33pc watching films on mobiles. Six-in-10 people who watched short clips, TV or Film on their phone did so whilst ‘out and about.’
The rise in people consuming mobile and video content has accelerated digital’s growth rate to its highest level for nearly a decade,” said the IAB UK’s Chief Marketing Officer, James Chandler. “Reaching the £10 billion threshold has been made possible by brands breaking the mould, trying innovative formats and making the most of video to reach and amaze people. It’s impossible to ignore the issues the industry is facing at the moment, but digital never stands still and these figures are testament to the long term strength and power of digital.”
Video – across mobile and PCs – is growing at 56pc, driven by outstream/social in-feed’s huge 234pc rise to £465 million. Outstream accounts for 43pc of all video spend but 56pc of mobile video. Pre- and post-roll video ad spend grew 12pc to £603 million (55pc share of all video).
Sebastien Bardin, Sony Mobile’s European senior digital marketing manager, added: "Online video is becoming a bigger priority, providing an impactful and cost-effective incremental reach. In particular, outstream video is great for engaging with our target audience in premium, trusted and viewable environments without disrupting their media consumption or being too intrusive."
Nearly three-quarters of display is traded programmatically
Display ad spend rose 26pc year-on-year to £3.77bn in 2016 – 72pc of which was traded programmatically (£2.71bn) – with significant growth coming from direct deals and private marketplaces.
“The biggest change in how display ads are sold is the rise of programmatic direct, which now accounts for nearly half of sales,” says Dan Bunyan, Senior Manager at PwC. "Right now, considerations such as brand safety mean the advertiser is rightly demanding more certainty in the placement of their ads and the industry is evolving quickly to find new solutions to address brands' needs in this dynamic environment"
Ad spend on social media sites grew 38pc to £1.73bn, accounting for nearly half (46pc) of display. Social media spend on mobile alone grew 54pc. Content & Native ad spend – which includes ‘advertorials’ and ads in social media news feeds – increased 28pc to £1.17bn (31pc of display).
Search and classifieds
Driven by mobile, which grew 48pc, paid-for search overall grew 15pc to £4.99bn – a 48pc share of digital ad spend. Classifieds, including recruitment, property and automotive listings, grew 8pc to £1.48bn (14pc share)."

Source:  Data from the IAB UK & PwC, from an IAB Press Release, 12th April 2017

Mobile now accounts for nearly half of US digital ad spend

"IAB (Interactive Advertising Bureau) announced today that digital advertising revenues in the United States for the first half of 2016 have reached an all-time high, scaling to $32.7 billion according to the latest IAB Internet Advertising Revenue Report released by the industry trade group and prepared by PwC US. This represents a 19 percent increase over last year’s then record-setting half-year revenues of $27.5 billion.
In step with that accelerated growth, revenue from the second quarter of 2016 reached $16.9 billion, an 18 percent increase over the $14.3 billion from the same time period last year.
Other highlights from the 2016 Half-Year Report include:
Mobile revenue saw the largest year-over-year change, climbing to $15.5 billion, up 89% from $8.2 billion in HY 2015, representing 47% of total internet advertising revenue
Taking a deeper dive into mobile, video on smartphones and tablets saw strong triple-digit growth, reaching $1.6 billion in HY 2016, an impressive 178% rise from HY 2015
Mobile search took a significant uptick, realizing $7.4 billion in HY 2016, a 105% increase compared to $3.6 billion in HY 2015
Total digital video, including mobile and desktop, rose to $3.9 billion in HY 2016, up 51% from $2.6 billion in HY 2015
Total search, including mobile and desktop, accounts for half of all internet ad revenue, and hit $16.3 billion in HY 2016, a 19% hike over the $13.7 billion generated in HY 2015
Total social media revenues, including mobile and desktop, surged to $7 billion in HY 2016, a 57% rise compared to $4.4 billion in HY 2015
Of the sector verticals measured, the top three continue to amass nearly half of all ad spend (46%)—retail (21%), financial services (13%), and automotive (12%)
“These half-year revenues are a testament to the role of digital screens—especially mobile screens—in consumers’ increasingly connected lives,” said Randall Rothenberg, President and CEO, IAB. “Marketers and brands clearly recognize the innate power of digital to offer immersive experiences and secure real-time engagement.”
“These numbers demonstrate the growing importance of mobile, showing us the increasing demand for digital video and search, available anytime, anywhere, in the palm of your hand,” said David Silverman, a partner at PwC US.
“Consumers’ appetite to enjoy media—in particular video and social media—on smartphones and tablets provides marketers with the opportunity to connect and interact with their customers while they are on the go, in a very personal environment,” said David Doty, Executive Vice President and CMO, IAB."

Source:  Press release from the IAB, 1st November 2016

Mobile ad spend has overtaken desktop ad spend in the UK

"Driven by mobile, digital advertising continues to prove its worth to advertisers who increased spend 16.4%¹ in the first half of 2016 to £4.78 billion – the highest first half growth rate for two years.
·       Overall 16.4% rise in digital spend is highest first half growth rate for two years
·       Mobile spend up 56.1%
·       Video the fastest growing ad format, up 67%
The PwC / Internet Advertising Bureau UK Digital Adspend report also shows the amount spent on mobile display ads (£802 million) overtook that of PC and tablet display (£762 million) for the first time. This significant development reflects the rapid growth of time spent on smartphones.
Total mobile ad spend, including search and classifieds, increased by 56.1% in the first half of 2016. Consequently, 36p in every £1 spent on digital advertising now goes to mobile, up from 4p just five years ago.
“Mobile use today is more akin to a computer than merely a phone, as people increasingly rely on them as their information, entertainment and communications hub,” said the IAB UK’s Chief Strategy Officer, Tim Elkington. “People now spend more time online on their mobile than they do on a computer. Consequently, marketers devote more ad spend to mobile as they increasingly cotton on to the fact that people essentially carry an ad platform with them wherever they are.”
Accompanying online YouGov consumer data shows that 82% of smartphone owners check their phone within an hour of waking up, while 86% of 18-34s do so within half an hour. For 1 in 5 of those looking at their phone soon after waking up, checking social media is the first thing they do, rising to 29% of 18-34s. The smartphone is now the primary source of news for 30% of owners, rising to 42% among 25-34s².
Video, social and native are fastest-growing formats
Spend on video ads overall grew 67% to hit £474 million during the front half of 2016. Driven by rising video, TV and film viewing on smartphones, mobile video spend alone grew 129%. Consequently, video accounts for 30% of all display advertising but 37% of mobile display.
Outstream and in-read video ads (those appearing anywhere on the page, not before video content) saw a massive 440% rise and now account for 40% of video spend, whilst ‘traditional’ video ads (which play before, during or after an online video) grew 17%.
Ad spend on social media sites grew 43% to £745 million, meaning nearly half (48%) of display spend now goes on social. Social media spend on mobile alone grew 64%, so mobile now accounts for 80% of spend allocated to social.
Content and native advertising spend – which includes ‘advertorials’ and ads in social media news feeds – increased 29% to £451 million.
Consumer goods are biggest display advertisers
Consumer goods brands – such as food, toiletries and clothing – spent the most on display ads (e.g. banners and video), responsible for 18.3% of spend, followed by travel & transport (16.4%) and automotive (11.7%).
Driven by mobile, which grew 61%, paid-for search overall grew 18.1% to £2.49bn – a 52% share of digital ad spend. Classifieds, including recruitment, property and automotive listings, grew 3.6% to £699 million (15% share).
“The phenomenal rise of mobile search reinforces the idea of mobile as the ever-present ad medium,” says Dan Bunyan, Senior Manager at PwC. “It means advertisers no longer have to wait to target people at specific ‘touchpoints’ during the day. Instead they can deliver highly relevant, localised ads with unprecedented immediacy, such as reacting to people reaching a specific place, looking for a particular product or even the weather changing.”"

Source:  Press release from the IAB UK, 12th October 2016

Google & Facebook 'get 75% of all new online ad spending'

"The bulk of spending by brands on digital advertising is going to Google and Facebook. Combined, they accounted for 75 per cent of all new online ad spending in 2015, according to the Internet Trends report published this month by Mary Meeker of Kleiner Perkins Caufield & Byers, the US venture capital fund. In the US, 85 cents of every new dollar spent on digital went to the two companies in the first quarter of 2016.
This matters because digital is fast becoming advertising’s biggest source of revenue. It will eclipse television in the US next year , according to eMarketer, the research firm, with the lion’s share likely to go to the digital duopoly of Facebook and Google. Executives in Cannes put a brave face on what this might mean for their industry but the consequences of two companies becoming the gatekeepers for most digital advertising are profound."
Source:  FT, 23rd June 2016

Note - I'm assuming that this is a global figure

Digital ad spend in Europe grew to €36.2bn in 2015, overtaking TV

At the 10th edition of its annual Interact conference today, IAB Europe announced that online advertising grew 13.1% to a market value of €36.2bn in 2015 surpassing the €33.3bn European TV market.
The AdEx Benchmark research – the definitive guide to the state of the European online advertising market – revealed a €30bn net addition to the online ad market in the last 10 years. All markets participating in the study recorded positive growth, a total of twenty markets grew double-digit for the second year running (three markets recording 30%+ growth, a further nine showing 20%+ growth and a further eight 10%+ growth). Mobile and video formats continue to show strong growth.
Townsend Feehan, CEO of IAB Europe, commented “These results confirm the lead position for digital advertising in the European media landscape echoing today’s digital first consumer environment. Given the ever-increasing contribution of digital advertising to the economy and its role in the delivery of digital content and services we must continue to foster European innovation and empower our businesses to compete across the globe.”
The IAB Europe AdEx Benchmark study splits the online ad market into three broad segments: Display, Search and Classifieds and Directories. Growth in these online advertising formats has been underpinned by shifting uses in devices and changing consumption patterns.
Display advertising outperformed other categories with a growth rate of 17.4% and the pace of Display growth further accelerated versus 2014. In 2015, the total value of the Display ad market was €13.9bn.
Search showed growth of 12.6% – and a market value of €16.9 billion. It continues to be the largest online advertising format in terms of revenue, and has increased its growth in 2015 after a slight decrease in 2014.
[...]
Mobile and video continue to be the key growth drivers of the European online ad market and this becomes increasingly apparent when looking at the more advanced mobile economies (like the UK and Ireland) where nearly 50% of online advertising is now generated on mobile.
Mobile display now accounts for €3.5bn or 25.4% of the display market, with a growth rate of 60.5% compared with 2014. Online video advertising also showed strong growth, now representing 16.7% of the display market.
[...]
The top 10 list of markets are as follows. Top 3 Individual growth markets were:
Ireland 29.0% growth
Bulgaria 22.3% growth
Poland 21.8% growth
Top 10 Rankings
UK – €11.8bn
Germany – €5.8bn
France – €4.2bn
Italy – €2.1bn
Netherlands- €1.6bn
Russia – €1.5bn
Sweden – €1.3bn
Spain – €1.2bn
Denmark – €0.8bn
Switzerland – €0.8bn

Source:  Press release from IAB Europe, 11th May 2016

US Digital Ad Spent hit $59.6bn in 2015

"U.S. digital advertising revenues reached an all-time high of $59.6 billion in 2015, according to the full-year IAB Internet Advertising Revenue Report, released today by the Interactive Advertising Bureau (IAB) and prepared by PwC US. This marks a 20 percent surge over the earlier record-breaking 2014 revenues of $49.5 billion – and represents the sixth year in a row of double-digit growth for the industry. In addition, the report shows that 2015’s fourth-quarter numbers reached $17.4 billion, a 23 percent increase from $14.2 billion in Q4 2014, and an 18 percent increase from the $14.7 billion in 2015’s third-quarter.
Other highlights include:
Mobile advertising skyrocketed to $20.7 billion during FY 2015, a 66 percent hike over the 2014 total of $12.5 billion
Digital video (non-mobile), a component of display-related advertising, reached $4.2 billion in 2015, a 30 percent rise over $3.3 billion in 2014
Social media advertising brought in $10.9 billion in 2015, up 55 percent over 2014’s $7 billion
Search (non-mobile) revenues reached $20.5 billion in 2015, up 8 percent from $19 billion in 2014
Display-related advertising (non-mobile) revenues in 2015 totaled $13.9 billion, representing 23 percent of the year’s revenues, an uptick of 3 percent over $13.5 billion in 2014
Retail advertisers continue to represent the largest category of internet ad spending, responsible for 22 percent last year, followed by automotive and financial services which each accounted for 13 percent of the year’s revenues"

Source:  Figures from the IAB & PwC reported in a press release on 21st April 2016

Full report here