NEW YORK: As digital ad revenues continue to rise, analysis from the Interactive Advertising Bureau (IAB) indicates that there are opportunities for publishers to attract more spending from small and medium-sized businesses (SMBs).
In an addendum to its latest “Internet Advertising Revenue Report” – which pegged digital adspend for the first half of 2017 at $40.1bn, a 23% year-on-year lift – the IAB observed that around three-quarters of the 9m or so SMBs in the US have spent money on advertising.
Of these, fully 80% have used self-service platforms, while 45% have tapped search-engine marketing, and 15% have leveraged programmatic advertising.
Given such compelling figures, the IAB suggested that publishers should ensure a suite of options are available to smaller businesses.
“Anyone with a good idea and a credit card can capture the attention of their customers directly, and this in turn represents an enormous growth opportunity for both marketers and publishers alike to help make these connections,” said Randall Rothenberg, CEO of the IAB.
Looking ahead, the IAB’s report – which drew on figures from Borrell Associates, the research firm – revealed that 63% of SMBs which already use digital advertising expect to increase their spending on this channel in the coming 12 months.
“We’ve seen digital marketing revenues climb steadily and this new analysis shows that there are more opportunities to be mined,” said Chris Kuist, the IAB’s SVP/Research and Impact.
“Varied audiences and advertising approaches can appeal to a wide variety of marketers in different shapes and sizes, bringing more dollars into the ecosystem and increasing the health of the interactive marketplace for all.”
Drilling down into the digital spending totals for the first half of this year, compiled with audit and consulting giant PwC US, the IAB outlined some further trends of note.
Mobile, the industry body reported, claimed 54%, or $21.7bn, of expenditure in H1 this year, representing a 40% lift in dollar terms on an annual basis, and more than doubling the revenues from the same period two years ago.
Total digital video ad revenues, incorporating both mobile and desktop, stood at $5.2bn from the beginning of January to the end of June this year, a 36% leap year on year.
More specifically, mobile video overtook its display counterpart in revenue terms for the first time, according to the IAB/PwC estimates.
Sourced from IAB; additional content by WARC staff