Online Video Ad Spend Grew 36%, Finds IAB Revenue Report

It’s a good time for online video ad sales. According to the IAB Internet Advertising Revenue Report for the first half of 2017, total online video ad sales (which include desktop and mobile) grew to $5.2 billion, up 36 percent over the same period in 2016. But don’t be swayed by that impressive average: Mobile is clearly the big gainer here. Mobile video ad spend grew by 65 percent, while desktop grew by 15 percent.

ad spendThanks to that dramatic increase in ad spend, mobile video and desktop video tied by each bringing in $2.6 billion. The year before, desktop video took in far more than mobile video ($2.3 billion compared to $1.6 billion).

This report comes out twice yearly and is prepared by PwC US. Looking at total ad spend, the report finds that mobile accounted for over half for the first time. In 2016, 47 percent of all digital revenue came from mobile, while 54 percent did in the first half of 2017. Mobile is growing so quickly that mobile ad spend for the first half of 2017 was greater than mobile ad spend for the full year of 2015.

“We should no longer think of the internet as mobile versus desktop,” says David Silverman, a partner at PwC US. “Advertisers are simply following consumers, who live their lives online—whether on a smartphone during a commute, on a desktop at work, or on a tablet for entertainment in the evening. Digital is an intrinsic part of every American’s day.”

It’s not just major brands that rely on online advertising. An addendum to the report shows that 75 percent of the country’s small and medium-sized businesses have spent on online advertising, with 80 percent using self-service offerings (as with Facebook and Twitter) and 15 percent buying programmatically. Publishers should add self-service and programmatic options if they don’t have them already, the report suggests, as 63 percent of SMBs that buy online ads plan to increase their spending in the coming year.

Download the full report for free (no registration required).


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