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US mobile adspend surges 89%

News, 03 November 2016

NEW YORK: Spending on mobile advertising in the US soared 89% to $15.5bn in the first half of 2016, representing nearly half (47%) of total internet advertising revenue, according to the latest figures from the Interactive Advertising Bureau (IAB).

Working with professional services firm PwC, the IAB calculated that total digital adspend in the US for the first half of the year reached a landmark high of $32.7bn, up 19% on last year's half-year revenues of $27.5bn – itself a record at the time.

The report confirmed that advertising dollars are increasingly pursuing consumers' appetite to access media on their mobile devices, and revealed that mobile video and mobile search saw unprecedented triple-digit growth in H1 2016.

Adspend allocated to video on smartphones and tablets grew 178% year-on-year to $1.6bn, while mobile search increased 105% to $7.4bn.

"These numbers demonstrate the growing importance of mobile, showing us the increasing demand for digital video and search, available anytime, anywhere, in the palm of your hand," said David Silverman, a partner at PwC US.

But these impressive growth figures were not restricted just to mobile because total digital revenues also recorded strong growth.

Total digital video, including both mobile and desktop, rose 51% year-on-year to $3.9bn, while total search, which accounts for half of all internet ad revenue, increased 19% to $16.3bn in H1 2016.

Elsewhere, total social media revenues, including mobile and desktop, surged 57% to $7bn compared with $4.4bn in the same period last year.

Commenting on the report, Randall Rothenberg, IAB President and CEO, said: "These half-year revenues are a testament to the role of digital screens – especially mobile screens – in consumers' increasingly connected lives.

"Marketers and brands clearly recognise the innate power of digital to offer immersive experiences and secure real-time engagement."

Data sourced from IAB; additional content by Warc staff