Digital Video Advertising Revenues Hit Record – $1.5B Already in 2014 [Report]

Digital Video Advertising Revenues Hit Record – $1.5B Already in 2014 [Report]

Online ad revenues hit an all-time high in the U.S. in the first part of 2014 at a record $23.1 billion. That’s an increase of 15% from the first half of 2013, and digital video played a major role for advertisers looking for the best ROI on their campaigns. Total online revenue numbers for Q2 2014 showed a similar growth compared to Q2 2013, with a 14% increase to $11.7 billion. Within the advertising sector, video advertising revenue increased 13% to $1.5 billion, but with Q3/4 results traditionally higher, we could see those figures jump even higher in the second half of 2014.

In the new ‘2014 Internet Advertising Revenue Report’ from IAB (Interactive Advertising Bureau), in conjunction with PwC US, the IAB also highlights the growth of mobile ad revenues, which have seen an impressive increase of 76% YOY to $5.3 billion, overtaking banner ad displays.

Internet Advertising Revenue Q1-Q2 2014: The Numbers

  • Digital video advertising revenue (which IAB class as display-related advertising) increased 13% to $1.5 billion
  • Total display-related advertising revenues increased by 6% to $6.5 billion, and now represent 28% of all digital ad revenue.
  • The top 3 advertising verticals are: Retail (21%), Financial Services (13%), and Automotive (12%).

Advertisers Continue to Invest in Online Video

Display advertising took a 28% share of the revenue pie in Q2 of this year, up 5% from Q2 2013. Digital video accounted for 7% (or $760 million). Mobile display accounted for $1.3 billion of revenue, and that category includes digital video, along with banner ads, and rich media advertising. Search accounted for $4.5 billion (38%) of total Q2 2014 revenues.

David Silverman, a partner at PwC US stated that “digital video too is seeing gains that reflect a new ‘viewing’ paradigm that is taking place on interactive screens, big and small.”

Mobile, Including Video, Most Inviting Format for Advertisers

While ad revenue via Search remains the leading category for revenue (39% for first half-year 2014), it has lost ground to mobile, and mobile search, which includes mobile video advertising. Mobile has grown substantially, and now accounts for just under a quarter of all advertising revenue. That’s an astonishing amount of growth, considering the medium only accounted for 9% of advertising revenue in 2012.

The numbers for the first half of 2014 are very impressive but we can expect the latter half of 2014 to outshine them. Randall Rothenberg, President and CEO of the IAB, confirmed that:

Brands are deepening their commitment to interactive advertising, and that mobile is seen as a crucial part of the marketing mix. 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.

The full report (along with past ones) can be downloaded from the IAB site using this very link.

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