iab internet advertising revenue report · 2017-01-25 · source: iab internet advertising revenue...
TRANSCRIPT
PwC
IAB internet advertising revenue report
2014 first six-months results
www.pwc.com
www.iab.net
PwC PwC
Agenda
2
October 2014
Survey methodology
2014 first six-months results
First six-months and quarterly trends
Advertising formats
Pricing models
Industry category spending
About PwC
PwC PwC
Survey Methodology
3
October 2014
Survey Scope
The IAB Internet Advertising Revenue Report is part of an ongoing IAB mission to provide an accurate barometer of Internet advertising growth.
To achieve differentiation from existing estimates and accomplish industry-wide acceptance, key aspects of the survey include:
• Obtaining historical data directly from companies generating Internet/online/mobile advertising revenues;
• Making the survey as inclusive as possible, encompassing all forms of internet/online advertising, including websites, consumer online services, ad networks, mobile devices and e-mail providers; and
• Ensuring and maintaining a confidential process, only releasing aggregate data.
Methodology
Throughout the reporting process, PwC:
• Compiles a database of industry participants selling internet/online and mobile advertising revenues.
• Conducts a quantitative mailing survey with leading industry players, including web publishers, ad networks, commercial online service providers, mobile providers, e-mail providers and other online media companies.
• Acquires supplemental data through the use of publicly disclosed information.
• Requests and compiles several specific data items, including monthly gross commissionable advertising revenue by industry category and transaction.
• Identifies non-participating companies and applies a conservative revenue estimate based on available public sources.
• Analyzes the findings, identifies and reports key trends.
PwC PwC
Half year revenues totaled $23.1 billion in 2014
4
October 2014
Online advertising revenue increased 15.1% in HY 2014.
In b
illi
on
s
$20.1
$23.1
HY 2013 HY 2014Source: IAB Internet Advertising Revenue Report, HY 2014
PwC PwC 5
October 2014
Half year revenues totaled $23.1 billion in 2014
Online advertising revenue increased 15.1% in HY 2014.
In b
illi
on
s
$20.1
$23.1
HY 2013 HY 2014
15.1%
Source: IAB Internet Advertising Revenue Report, HY 2014
PwC PwC 6
October 2014
Second quarter revenues totaled $11.68 billion in HY 2014
Revenue in Q2 2014 was 13.8% higher than in Q2 2013.
In b
illi
on
s $10.3
$11.7
Q2 2013 Q2 2014Source: IAB Internet Advertising Revenue Report, HY 2014
PwC PwC 7
October 2014
Second quarter revenues totaled $11.68 billion in HY 2014
Revenue in Q2 2014 was 13.8% higher than in Q2 2013.
In b
illi
on
s $10.3
$11.7
Q2 2013 Q2 2014
13.8%
Source: IAB Internet Advertising Revenue Report, HY 2014
PwC PwC 8
October 2014
Strong Growth between Q1 2014 and Q2 2014
Revenue in Q2 2014 was $264 million higher than in Q1 2014.
In b
illi
on
s
$11.4 $11.7
Q1 2014 Q2 2014Source: IAB Internet Advertising Revenue Report, HY 2014
PwC PwC
Source: IAB Internet Advertising Revenue Report, HY 2014
9
October 2014
Strong Growth between Q1 2014 and Q2 2014
Revenue in Q2 2014 was $264 million higher than in Q1 2014.
In b
illi
on
s
$11.4 $11.7
Q1 2014 Q2 2014
2.3%
PwC PwC
$0
$1
$1
$2
$2
$3
Source: IAB Internet Advertising Revenue Report, HY 2014
10
October 2014
In the early 2000s, internet advertising hit a bubble Quarterly growth comparison, 1996-2002
In b
illi
on
s
’97 ’98 ’99 ’00 ’01 ’02 ’96
PwC PwC
$0
$2
$4
$6
$8
$10
$12
$14
Source: IAB Internet Advertising Revenue Report, HY 2014
11
October 2014
Since 2003, 78% of quarters have experienced positive growth over the prior quarter Quarterly growth comparison, 1996–HY 2014
In b
illi
on
s
$11
Revenues have remained above $11 billion for
three consecutive quarters.
’97 ’98 ’99 ’09 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’10 ’11 ’12 ’13 HY ’14 ’96
PwC PwC
Source: IAB Internet Advertising Revenue Report, HY 2014
12
October 2014
First six-months 2014 shows record revenues Historical revenue mix, first half vs. second half
In b
illi
on
s
$3.3 $4.6 $5.8 $7.9
$10.0 $11.5 $10.9 $12.1 $14.9
$17.0 $20.1
$23.1
$4.0 $5.0
$6.8
$9.0
$11.2 $11.9 $11.8
$13.9
$16.8
$19.5
$22.7
?
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Last 6 months
First 6 months
* CAGR: Compound Annual Growth Rate
PwC PwC
Source: IAB Internet Advertising Revenue Report, HY 2014
13
October 2014
Mobile shows the strongest growth Advertising formats – HY 2014 results and growth rates
$9.1
$1.3
$0.9
$5.3
$1.5
$3.9
$0.4 $0.7
4%
1%
7%
76%
13%
4% 4%
9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
$-
$1
$2
$3
$4
$5
$6
$7
$8
$9
Search Classifieds &Directories
LeadGeneration
Mobile Digital VideoCommercials
Banners Ads Sponsorship Rich Media
HY 2014 Revenue HY 2014 vs. HY 2013 % Growth
In b
illi
on
s
PwC PwC
Source: IAB Internet Advertising Revenue Report, HY 2014
14
October 2014
Historical trends in internet advertising formats Revenue share by major ad formats, 2006–HY 2014
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Search Mobile Banner Ads Rich Mediaand Digital
Video
Classifieds LeadGeneration
Sponsorship
2006 2007 2008 2009 2010 2011 2012 2013 HY 2014
% o
f to
tal
re
ve
nu
e
PwC PwC 15
October 2014
Mobile represents a significant percentage of advertising formats
For the half year in 2014, Mobile revenue totaled $5.3 billion
39%
28% 10%
51%
47%
2%
23%
Search Display Other
Mobile Search Mobile Display Mobile Other
Source: IAB Internet Advertising Revenue Report, HY 2014
PwC
Search and display drive mobile advertising Mobile format ad revenue by category, Q2 2014 and HY 2014
1,428 51%
1,337 47%
54 2%
Q2 2014
Search Display-related Other
Total – $2.8 Billion
Total – $5.3 Billion Source: IAB Internet Advertising Revenue Report, HY 2014
2,733 51%
2,498 47%
103 2%
HY 2014
Search Display-related Other
16
October 2014
PwC
Distributing Mobile across formats demonstrates its importance to Search and Display
39%
28%
10%
23%
Search Display Other Mobile
Source: IAB Internet Advertising Revenue Report, HY 2014
17
October 2014
51%
39%
10%
Search Display Other
Formats – HY 2014 (Mobile separated)
Formats – HY 2014 (Mobile included)
PwC PwC
Social media demonstrates continued growth Social media ad revenues, 2012 – HY 2014
Source: IAB Internet Advertising Revenue Report, HY 2014
18
October 2014
$1.2
$1.7 $1.9
$2.6
$2.9
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
1H 2012 2H 2012 1H 2013 2H 2013 1H 2014
CAGR* 54%
In b
illi
on
s
* CAGR: Compound Annual Growth Rate
PwC PwC
Source: IAB Internet Advertising Revenue Report, HY 2014
19
October 2014
Pricing models Internet ad revenues by pricing model, HY 2013 vs. HY 2014
33%
65%
2%
HY 2013
Impression-based Performance-based
Hybrid
34%
65%
1%
HY 2014
Impression-based Performance-based
Hybrid
Total – $20.1 billion
Total – $23.1 billion
PwC
Historical pricing model trends Internet ad revenues by pricing model, 2005–HY 2014
46% 48%
45%
39% 37%
33% 31% 32% 33% 34%
41%
47%
51%
57% 59%
62% 65% 66% 65% 65%
13%
5% 4% 4% 4% 5% 4% 2% 2% 1%
0%
10%
20%
30%
40%
50%
60%
70%
2005 2006 2007 2008 2009 2010 2011 2012 2013 HY 2014
CPM Performance Hybrid
% o
f to
tal
re
ve
nu
e
Note: Pricing model definitions may have changed over the time period depicted both within the survey process and as interpreted by respondents Source: IAB Internet Advertising Revenue Report, HY 2014
October 2014
20
PwC
Internet ad revenues by major industry category $20.01 B in HY 20123 vs. $23.1 in HY 2014
21%
13% 12%
9% 8%
7% 6%
5% 5% 4%
21%
13% 12%
9% 9%
7% 7%
5% 5% 4%
Retail FinancialServices
Auto Telecom LeisureTravel
PackagedGoods
Tech /Computing
Media Pharma &Healthcare
Entertain-ment
1H 2013 1H 2014
% o
f to
tal
re
ve
nu
e †
† Amounts do not total to 100% as minor categories are not displayed. Source: IAB Internet Advertising Revenue Report, HY 2014
October 2014
21
PwC PwC October 9, 2013
PwC New Media Group
As business, accounting, and tax advisors to many of the world’s leading Entertainment, Media, and Communications (EMC) and Technology (Tech) companies, PwC (www.pwc.com) has an insider’s view of trends and developments driving the industry. With approximately 1200 practitioners serving EMC and Tech clients in the United States, PwC is deeply committed to providing clients with industry expertise and resources. In recent years, our pioneering work in EMC and Tech has included developing strategies to leverage digital technology, identifying new sources of financing, and marketplace positioning in industries characterized by consolidation and transformation. Our experience reaches across all geographies and segments of the EMC and Tech sectors, including broadband, wireless, the Internet, music, film, television, publishing, advertising, gaming, theme parks, computers and networking, and software. With thousands of practitioners around the world, we are always close at hand to provide deep industry expertise and resources.
PwC’s New Media Group was the first practice of its kind at a Big Four firm. Currently located in New York, Los Angeles, Boston, Seattle and the Bay Area, our New Media Group includes accounting, tax and consulting professionals who have broad and deep experience in the three areas that converge to form new media: advanced telecommunications, enabling software and content development/distribution.
Our services include:
• Business assurance services
• Web audience measurement and advertising delivery auditing and advisory
• IAB Measurement Certification Compliance auditing
• Privacy policy structuring, attestation and compliance advisory
• Mergers & Acquisition assistance
• Tax planning and compliance
• Capital sourcing and IPO assistance
22
October 2014
PwC PwC October 9, 2013
For information about our New Media Group, contact one of the following PwC professionals: New York
David Silverman Partner, Assurance Services 646.471.5421 [email protected] York
Russ Sapienza Partner, Advisory Services 646.471.1517 [email protected] Michael Altschul Director, Advisory Services 646.471.4903 [email protected]
23
PwC New Media Group Contacts
October 2014
PwC
www.pwc.com/e&m
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