Digital Ad Revenues Hit Landmark High

Internet ad revenues climbed to an historic first half-year high of $23.1 billion, according to the IAB Internet Advertising Revenue Report released Monday by the Interactive Advertising Bureau (IAB).

This marks a 15 percent rise over 2013’s first-half ad revenues of $20.1 billion.

Maintaining the positive trajectory, second quarter 2014 internet ad revenues rose to $11.7 billion, representing a 14 percent year-over-year increase, up from $10.3 billion in Q2 2013.

Highlights of the report include:

• Mobile revenues increased 76 percent to 5.3 billion at HY 2014, from the $3.0 billion (15% of total) reported at HY 2013, with the 2014 six month total consisting of $2.7 billion mobile search, $2.5 billion mobile display, and $103 million in other mobile formats
• Digital video, a component of display-related advertising, reached $1.5 billion, a 13 percent increase in revenue over the first half of 2013 at $1.3 billion
• Search revenues in the first half of 2014 hit $9.1 billion, up 4 percent from $8.7 billion in the first six months of 2013
• Display-related advertising revenues in the first half of 2014 totaled $6.5 billion, a 6 percent uptick from $6.1 billion in the first half of 2013, and accounted for 28 percent of digital advertising revenue overall
• Social media revenues, which includes advertising delivered on social platforms, including social networking and social gaming websites and apps, reached $2.9 billion in HY 2014, a double-digital hike of 58 percent over the same period in 2013, at $1.9 billion
• The top three advertising verticals continue to account for nearly half of advertising revenue (46%), including Retail at 21 percent, Financial Services at 13 percent and Automotive at 12 percent

“This report confirms the fact that brands are deepening their commitment to interactive advertising, and that mobile is seen as a crucial part of the marketing mix,” said Randall Rothenberg, President and CEO, IAB. “Moreover, with second half revenues traditionally surpassing those in the first half of the year, this milestone achievement is potentially a harbinger of even stronger digital ad revenues to come.”

“Consumers living online is no longer the exception—It is the rule,” said Sherrill Mane, Senior Vice President, Research, Analytics and Measurement, IAB. “Digital screens have become vital tools at every juncture of the day. It is no surprise that brand dollars have followed this growing movement at a steady clip.”

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