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Mobile and Search push Digital Ad Growth

Internet advertising revenue shot up by 22% and mobile ads jumped by nearly 3 times during the year 2011 as per a Price Waterhouse Coopers PwC report prepared for the Internet Advertising Bureau. IAB is an association of 500 top media and tech companies revealed that ad revenues soared to $31 billion in 2011 as against $26 billion last year.

Mobile ads that were rather miniscule at $0.6 billion last year jumped to$1.6 billion. This is an increasing sign of advertiser’s gradual shift to digital media platforms in a world that is being increasingly dominated by the mobile phone and the tablet.

A detailed breakdown of the various segments showed that it was the performance based search related advertisements that were the largest earners . Last year search related ads clocked $11.66 billion in revenue and accounted for 44.8% of the total digital advertisement market. This year the share of search ads in the pie has gone up to 46.5% as it recorded a 27% rise annual rise to clock $14.77 billion.

Display related advertising revenues were the next big gainers growing by 15% from $9.6 billion to $11.1 billion that accounted for nearly 35% of the revenue pie. Among display related ads it was the digital video segment that grew the quickest growing by 29% annually to $1.8 billion in revenue from $1.4 billion last year.

Mobile advertisement was the fastest growing segment with an explosive growth of 266% from $ 0.6 billion last year to $1.6 billion . With over double digit user growth from most emerging nations of Asia and Africa, this is likely to be the fastest growing segment with maximum reach. Advertisement in mobile segment will grow with video and audio presentations with the explosion of smartphones with higher speed and data carrying capability. Mobile gaming has already caught on and will help introduce various innovations in this segment.

Randall Rothenberg, President and CEO, IAB said while presenting the PwC report “Pushing past the $30 billion barrier, the interactive advertising industry confirms its central place in media. Across search, display, digital video, digital provides a wealth of opportunity for brands and consumers. With the proliferation of smartphones and tablets, it is likely that the tremendous growth in mobile will continue as these screens become even more crucial to the marketing mix.”

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