Mobile display continues to dominate spend with a 54% share at €34 billion ($45 billion)
Brussels, 7 July 2017 – IAB Europe, the IAB and IHS Markit revealed their global figures for mobile advertising revenue today. The figures show that mobile advertising growth continues to accelerate and increased 60.5% to €63bn ($83bn) in 2016 from €39bn ($52bn) in 2015, driven by a mobile first consumer world and improving marketing technologies.
Mobile display continues to drive investment with the highest growth at 64.3%, whilst mobile search lagged slightly behind, up 61.1%. Messaging grew by 11.2%, as users continue to migrate from operator-owned messaging services to app-based messaging platforms.
In 2016, display increased its share to 54% of all mobile spend globally at €34bn ($45bn) and search takes a 42.8% share at €27bn ($36bn). Messaging’s share continues to decline with a 3.1% share at €1.9bn ($2.6bn).
The share by region of the global figure of €63bn ($83bn) for 2016 is:
Growth year-over-year was led by North America, with all regions seeing an increase:
Townsend Feehan, CEO of IAB Europe said: “The latest Global Mobile Advertising Revenue numbers confirm that we are now in a mobile-first media consumption and advertising environment. Mobile continues to be at the forefront of digital advertising growth in Europe highlighting it as a priority for advertisers, agencies and publishers.”
"These global figures reflect brands' recognition that mobile is critical in reaching today's consumers around the world," said Anna Bager, Senior Vice President and General Manager, Mobile and Video, IAB. "We've experienced skyrocketing growth for mobile advertising in the U.S.—with mobile capturing the majority of internet ad revenues for the very first time in 2016. With mobile taking this landmark lead in digital revenues in America, it is unsurprising to see an upward trajectory the world over.”
“The global mobile ad market has not only benefitted from the rapid smartphone adoption in emerging markets but also better ad targeting capabilities in mature markets”, said Qingzhen Chen, Senior Analyst, Technology, Media and Telecom, IHS Markit. “An influx of investments and partnerships for premium content and data collaboration between broadcasters and leading online platforms were the key drivers for the strong mobile growth. The Western markets were driven by several key markets but dominated by global players, whereas in APAC local players accounted for most of the growth”.
“High double digit growth of 60.5% in global mobile advertising was also fueled by continued improvements in advertising technology”, said Kia Ling Teoh, Analyst, Technology, Media and Telecom, IHS Markit. “Standardisation of measurement has helped to better capture consumer interaction with mobile ads as media consumption increasingly shifts to mobile devices. This is particularly important in emerging markets where, for many people, mobile is the first and only means of accessing the internet”.
Download the report here.
For more information, please contact:
Alison Fennah, IAB Europe (fennah@iabeurope.eu)
Marie-Clare Puffett, IAB Europe (puffett@iabeurope.eu)
About IAB Europe
IAB Europe is the leading European-level industry association for the online advertising ecosystem. Its mission is to promote the development of this innovative sector and ensure its sustainability by shaping the regulatory environment, demonstrating the value digital advertising brings to Europe’s economy, to consumers and to the market, and developing and facilitating the uptake of harmonised business practices that take account of changing user expectations and enable digital brand advertising to scale in Europe.
About IHS Markit (www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
IHS Markit is a registered trademark of IHS Markit Ltd. All other company and product names may be trademarks of their respective owners © 2017 IHS Markit Ltd. All rights reserved.
About IAB
The Interactive Advertising Bureau (IAB) empowers the media and marketing industries to thrive in the digital economy. It is comprised of more than 650 leading media and technology companies that are responsible for selling, delivering, and optimizing digital advertising or marketing campaigns. Together, they account for 86 percent of online advertising in the United States. Working with its member companies, the IAB develops technical standards and best practices and fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. The organization is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the IAB advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, the IAB is headquartered in New York City and has a West Coast office in San Francisco.
Bio
With expertise and experience in the digital industry spanning 20 years of media disruption and innovation, Steve specialises in talent development in digital publishing, marketing and advertising.
Working with companies at all stages of digital transformation, he is dedicated to developing and connecting talent at at all levels from C-suite and senior management level to graduates and interns. Steve also delivers general consultancy services on digital strategy and commercial development.
Steve has been privileged to work with clients in the UK and Europe including The Guardian Media Group, Telegraph Media Group, News UK, Independent News & Media Ireland, The Irish Times, TV3, Hearst, Conde Nast, Bauer Media, Time Inc, Haymarket Media Group, Incisive Media, Centaur, Autotrader, Madgex, Gumtree, Boat International, TargetJobs, and many more specialist media owners and advertising groups.
Steve is currently runs digital training courses for IAB UK, IAB Ireland and IAB Romania, and also holds revision workshops for candidates taking the IAB Digital Advertising Sales Certification programme.
He also has interests in behavioural science, elite athlete development, and the human relationship with technology.
Courses include:
Foundation in Digital Advertising Sales (for media owners)
Digital Display Advertising Sales (includes an introduction to programmatic trading, for media owners)
Digital Creative Solutions Sales (includes native advertising and content marketing, for media owners)
The Visual Web (includes the use of infographics, data-driven visuals, video, live-streaming, personalised creative, Augmented and Virtual Reality)
Foundation in Programmatic Trading (for media owners, and media buyers)
An Introduction to Measurement and Attribution
Audiences: Big Data, Metrics and Consumers - using insights and realtime data to drive marketing communications
The Use of Behavioural Science in Marketing and Communications
The Use of Artificial Intelligence and Machine Learning in Marketing and Communications
Personalisation in marketing - from CRM, look-a-like audiences, dynamic creative to personalised video, messaging and chatbots
Digital Recruitment Advertising - job boards, employer branding, latest innovations
Digital Automotive Advertising - latest in automotive marketing
Digital curation - how digital experiences (eg music (Spotify), tv/movies (Netflix), shopping, news, features) are created using data, insights, machine learning, product placement, and human input.
Contact information:
Steve Thompson
Digital Media Consultant
Telephone: 00 44 7909 504439
Email: steve@thompsondigitaltraining.co.uk
The latest AdEx Benchmark report published by IAB Europe shows that in 2016 online advertising spending across Europe reached a new high of €41.8 Billion, a rise 12.2% on 2015 and this compares favourability as an industry to GDP growth across the EU of 1.8% (EU commission). This growth also hides a polarisation across the industry with the top players in the market independently reporting revenue growth of around 50% indicating much slower growth in the long tail of available media properties
It’s not only online that has grown in 2016
Across all media, 2016 saw a new high for advertising spend, the last peak being in 2008.
Since 2008 although online has grown each year traditional media has been declining and offset overall industry growth. In 2016 a combination of strong online growth and a smaller decline in traditional media revenue has created this new market high. Within this TV and OOH also grew but less than digital with print seeing the most significant decline.
The largest markets still dominate but smaller and CEE markets show the highest % growth
At a market level the UK is the largest market with €14.1Bn of online advertising spend in 2016, to put this dominance in perspective this is as large as the next 3 markets combined, Germany, France and Russia. Digital ad spend per person in the UK is the highest at around €218 compared to the next largest market Germany at €73. As the largest market the UK also saw the highest increase in absolute spend up €1.7Bn however there is a different picture when looking at percent increases. Here growth is led by CEE markets, the top being Romania seeing a 37% increase and Slovenia growing 33%.
Advertising growth is influenced by formats.
Advertising formats influence overall growth figures. The growth in Mobile spend averages +53% across the region with even the lowest growth markets increasing by 25%. The top 3 growth markets being Serbia +327%, Romania +191% and Czech Republic +156%
Mobile's share of online spend has jumped nearly 10 percentage points and now accounts for 33% of all spend across the region. Mobile advertising spend is very polarised by market with the UK (the largest market) accounting for 45% of all mobile spend across the region and the top 3 markets UK, France and Germany accounting for 71% of Mobile spend.
The pattern of market strengths for mobile differs compared with total online spend with France in second place above Germany and Italy the third largest market jumping above Russia.
The growth in Mobile spend averages +45% across the region. The smaller CEE markets led the growth in mobile as in total online ad spend; the top 3 growth markets being Serbia +327%, Romania +191% and Czech Republic +156%
Video advertising grew 21% and now accounts for 18% of all display advertising with all but one market achieving double digit growth. Growth is again dominated by smaller markets; Slovenia 121%, Serbia +103% and Ireland +92% and total spending is dominated by the larger markets but less polarised than with mobile.
The UK is the largest where video accounts for 28% of total online spend followed by Italy at 12% and Germany at 11%.
The flip side of this exceptional growth in Mobile and Video is a decline in desktop banner expenditure which is particularly evident in the UK, Italy and France.
The outlook ahead.
To download a copy of the report click here. You can also use this link to register for a webinar on the results hosted by IAB Europe on the 18th of July 2017.
The AdEx Benchmark study has collected online advertising spend data across Europe for 11 years and is based on reported data from 27 local IAB's. The estimates are based on local IAB insight in collaboration with IHS Markit and based on IHS advertising Intelligence Service & macro-economic research group.
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