iab 2018年網(wǎng)絡(luò)廣告收入報告英文2019

Tableofcontents

1

Background:

TheIABinternetadvertisingrevenuereportisnowinits23rdyear

2

Executivesummary:Digitalrevenuessurpassed$100Bforthefirsttime

3

Fullyeargrowth:Digitalrevenuestotaled$107.5BinFY2018

4

Keygrowthdrivers:Social,commerce,GDPR/CCPA,

programmatic,andnewadtechnologyhighlightthisyear’sgrowthdrivers

Historicalrevenuemix:Secondhalfrevenuestotaled

10

$57.9B

11

Revenueconcentration:Top10companies

command75%ofthemarket

12

Fullyear2018results:Digitalvideoshowsthelargestgrowthamongallformats

13

Q42018results:Videoexpandsshareofoverallrevenuesto16%

Socialmedia:

17

$29Bofdigitaladrevenueattributabletosocial

18

Digitalaudio:Totaldigitalaudioadrevenuesreach

$2.3B

19

Revenuesbypricingmodel:AdrevenuescontinuetobeattributabletoCPMpricingmodel

20

Historicalpricingmodeltrends:Performance-basedpricingisstillthefriendliestforadvertisers

7

Quarterlygrowth:Revenuesgrew19.8%betweenQ4

reach$31.4b Historical

trends(desktopvs.

8

2017andQ42018 14

Desktopvsmobile:

15

Mobilecommands65.1%oftotaldigitaladrevenues

9

16

Historicalquarterlyrevenuetrends:Q42018revenues

mobile):65.1%ofallrevenuesarenowattributedtomobile

Formats(desktopandmobile):Mobiledigitalvideorevenue

grows 65.2%

Digitalvideo(desktopvs.mobile):Mobiledigitalvideorevenuehit$10.2b

Admarketsharebymedia:Internetadvertisingstillleadstheway

21

22

Historicaladvertisingmarketshare:Onlyinternetadrevenueexperienceddoubledigitgrowth

Background

AbouttheIABinternetadvertisingrevenuereport

CommissionedbytheIABandconductedbyPricewaterhouseCoopersLLPonanongoingbasis,withresultsreleasedquarterly,the“IABinternetadvertisingrevenuereport”wasinitiatedbytheInteractiveAdvertisingBureau(IAB)in1996.ThisreportutilizesdataandinformationreporteddirectlytoPwCfromcompaniessellingadvertisingontheinternetaswellaspubliclyavailablecorporatedata.

Theresultsreportedareconsideredtobeareasonablemeasurementofinternet/online/mobileadvertisingrevenuesbecausemuchofthedataiscompileddirectlyfrominformationsuppliedbycompaniessellingadvertisingonline.Thereportincludesdatareflectingdesktopandmobileonlineadvertisingrevenuesfromwebsites,commercialonlineservices,adnetworksandexchanges,mobiledevices,andemailproviders,aswellasothercompaniessellingonlineadvertising.

ThereportisconductedindependentlybyPwConbehalfoftheIAB.PwCdoesnotaudittheinformationandprovidesnoopinionorotherformofassurancewithrespectto

theinformation.Onlyaggregateresultsarepublishedandindividualcompanyinformationisheldinstrict

confidencewithPwC.Furtherdetailsregardingscopeand

methodologyareprovidedintheappendixtothisreport.

Executivesummary

Digitalrevenuesforfullyear2018surpassed$100billionforthefirsttime

InternetadvertisingrevenuesintheUnitedStatestotaled$107.5billionforthefullyear(“FY”)of2018,withQ42018accountingforapproximately$31.4billionandQ32018accountingforapproximately

$26.6billion.RevenuesforFY2018increased21.8%overFY2017.

Quarteroverquarterdigitalrevenuesincrease18.1%forQ42018

Advertisingrevenuesdeliveredonmobiledevicestotaled$69.9billioninFY2018,a39.7%increasefromthepriorFY2017revenuesof$50.1billion.

Advertisingdeliveredonamobiledevicenowmakesup65.1%oftotalinternetadvertisingrevenues.

Advertisingrevenuesfromdigitalvideototaled$16.3billionforFY2018,up37%from

“

theprioryear.Revenuesfromdigitalvideonowmakeupmorethan15%oftotalrevenues.

Surpassing$100billioninannualrevenueisawatershedmomentforthedigitaladvertisingecosystem—onebuiltonitspowertobuilddirectrelationshipsbetweenbrandsandtoday’sconsumers.Innovativeplatformslikeover-the-toptelevision,podcasts,virtualreality,andaugmentedrealityallhavethepotentialtohelpmarketersforgeevenstrongertieswithaudiences,asbrandsnavigatethenew‘consumerfirst’playingfield.”

|RandallRothenberg,PresidentandCEO,IAB

“

Yearafteryear,brandshavebeenincreasingtheircommitmenttodigitalasaprimarychanneltoreachconsumers.Theanalysisinthisreporthighlightsimportantdriversandtrendsthat

couldinfluenceinteractive’strajectoryintheyearstocome,asmarketerslooktonewformatsandtechnologiestohelpthemconnectwithconsumers.”

|DavidSilverman,Partner,PwC

|3

2018revenuesshowcontinuingstronggrowth

Digitalrevenuestotaled$107.5BinFY2018

RevenuesforFY2018totaled$107.5billion,$19.2billion(21.8%)higherthaninFY2017.

FY2017vs.FY2018revenue

($billions)

21.8%YoYgrowth

$107.5

$88.3*

FY2018

FY2017

*Restatedduetoinclusionofpodcastrevenue

($millions)

Q12017

Q22017

Q32017

Q42017

Asoriginallyreported

$19,352

$20,786

$21,764

$26,106

Asrevised

$19,404

$20,847

$21,832

$26,183

Source:IAB/PwCInternetAdRevenueReport,FY2018

PwC|IABinternetadvertisingrevenuereport

Keygrowthdrivers

PwC|IABinternetadvertisingrevenuereport

|4

TheBattleforMarketSupremacy

Atthispoint,disruptionintheUnitedStatesdigitaladvertisingindustryistheoperationalnormal.Sincetheindustry’sfoundingtwodecadesagonewentrantsandrealignmentsofleadingplayershavebroughtsignificantpowershiftswithdisruptivechange,and,inrecentyears,ahandfulofleadingcompaniesgeneratingmuchofthegrowth.Digitaladgiantsareabletogainsuchstrengthbyadvancingcapabilitiesandcontrolovertheend-to-endpurchaselifecycle,leveragingdata,Artificialintelligence(AI)ande-commerce.

Smallerplayersacrosstheindustryarealsomakingmovestoboosttheiradrevenuesbyformingstrategicpartnershipstoleverage

naturalstrengthsandcastawidernetofuserimpressionsthroughsimpleinventoryexpansion

andincreasedaddressability.

Asconsumersshiftawayfromtraditionalmedia,digitalleadsthewayinregainingtheirattention,firstfromdesktoptomobiledevicesandmorerecentlytoconnectedTV,audiodevices,anddigitaloutofhome,thesteadystreamofeyeballs(andears)continuetodrivegrowthacrossthespace.

Inmorematuremarketsegments,thefightovertheexistingeyeballsisheatingup.Largeplayersthatserviceboththeirownpropertiesaswellasofferingsophisticatedadplatformsthatservethe“open”internetcontinuetoputpressureonstandalonepublishersandsmalleradnetworksandplatforms.

TheResurgenceofeCommerce

DigitaladrevenuestemmingfromeCommerce,includingtheemergenceofthedirectbrandeconomy,hasbeenakeydriverofrecentgrowth.Playerscontinuetoaddfeatures,makingiteasier

foradvertiserstotargetaudiencesreadytobuyandconvertsearchesintopurchases.Combiningtheuseofdatainnewandinnovativewayswithcontinuingadvancements

inAI,publishersandadvertisersalikeareabletoextrapolatelucrativeinsightsacrossthecompleteconsumerjourneyandcreateauniqueopportunityforadvertisers:adtargetingaccordingtoanticipatedpurchaseintent.

Keygrowthdrivers,continued

Companiesarecapitalizingontheirtroveofconsumerdata,includingpurchasingandbrowsinghistory,enablingadvertiserstoprogrammaticallyreachaudiencesinmoreeffectveways.Shoppableadscombiningproductphotoswithone-to-onetargetingas

wellassophisticatedsearchcapabilitieswithinanecommerceplatformareturningclicksintoveritableconversions.

eCommerceisnolongerconstrainedtodigitalstores;socialstoriesserveasaconduitfor,anddrivingforcebehind,‘direct-to-consumer’(DTC)retail.Largeandsmalladvertisersalikeareabletodeliverengagingcontentinnewandinnovativeways.

StorytellingCatchesFire

Ledbysocialmedia,brandstorytellingisagrowingtrendacrossplatforms.Socialmedia,iscontinuingtodisrupttheindustryandisprovidingadvertisersnewanduniquewaystoengagewithconsumers,includingthrough“socialstories”,whichare

adscateredspecificallytotheplatform.Asaresult,thegrowthfromsocialmediacontinuestooutpacetheoverallindustryandhasbeenakeydriverofgrowth.Consumers,especiallyGenZ,areadoptingsocialstoriesatwarpspeed,while,atthisrate,weapproachafuturewheresocialstoriesmaysurpasssocialfeedsinbecomingtheprevalentwayconsumersengagewithadvertisementsonsocialmedia.Withadsthattakeuptheentirescreenonaplatformalreadyconducivetoconsumer

engagement,thestoriesformatpresentsapotentialantidotetotheissueofcapturingconsumerattention.

Asaresult,advertisers(agroupthatnowincludessocial

influencers)arerushingtopush-outadsinaverticalvideoformatinanefforttoturnconsumerinteractionintoactualconversions.Yet,giventhesubstantialresourcesrequiredtocreateadsintheverticalvideoformatandtocontinuouslycreatethedynamicandengagingcontentneededforstories,itwillbeup

tosocialmediacompaniestoconvinceadvertisersoftheefficacyofthestoryadplatforminordertocontinuetogrowthemedium.

Whilethepresenceofsocialmediaisstillgrowing,recentregulatorypressure,fromthepassingofGDPRandotherloomingregulations,isleadingsocialmediasites(andothers)torethinktheirstrategiesastheygrappletobalancerevenuegrowthandcompliance.Pressureisalsocomingfromconcerned

usersaboutthestoringanduseofconsumerdataandthefactthatyoungerconsumersarekeentojumpfromonesocialplatformtothenext.

IntroductionofGDPR/CCPA

Forthepastseveralyears,datadrivenadvertisinghasexperiencedsubstantialrevenuegrowthaidedinlargepartbytheaccessplayershavehadtodataonconsumerpreferencesandthesophisticationofmodelstoevaluatethedata.

RecentregulationssuchasGDPR

andthesoon-to-be-enforcedCCPA,whichbotharoseoutofincreasedcuriosityandworrybyconsumersabouthowtheironlinedataisbeingsharedandmonetized,areimpactingmany

UScompaniesandthisimpactwilllikelygrow.

Whilestillinitsnascency,GDPRisprecipitatingagreaterchasminthebalanceofpowerbetweensmallerandlargerplayers.Withtheirabundanceofresources,largerplayersareinanadvantageouspositionto

continuetheirgrowthmomentumandinvestincompliance.Smallerplayersinthespacemayhavemoredifficultyinsettingupregulatoryguardrails,withsomegoingasfarasblockingEuropeanvisitors,limitingtrafficandvaluableimpressionopportunitiesastheyworkonfindingsolutionstowardscompliance.

Ascanbeexpected,complementingtheregulatoryroll-out,thereisanuptickinfinesrelatedtonon-compliance.Evenlargesophisticatedcompaniesarenotimmunetotheimpact,andplayersacrossthespacegrapplewiththecomplexityofadheringtothenewlaws.

TalkarounddataregulationismountingintheU.S.andisnotexpectedtolosesteam.MoreUSstatesarecontemplatingfollowinginthestepsoftheEuropeanandCalifornianleadersinenactingformaldatagovernance.Ascanbeexpected,companiesareproactivelyrethinkingstrategyandareworkingtowardssolutionstofostertransparencyandtrust

Keygrowthdrivers,continued

tokeepadvertisersandusersconfidentintheirsecurityandfairuseofdata.

Whiletheseconcernswillmostcertainlyprovidechallengeswithinthemarket,thereispotentialopportunityforcompaniestosuccessfullynavigateregulatorycomplianceandinnovateinthefuture.

ProgrammaticAdvertising

Programmaticadrevenuescurrentlyaccountfor80%ofalldigitaldisplayadvertisingrevenues.

Thebenefitofprogrammaticadvertisingistheefficientbuyingandsellingofads,costsavings,andsmartaddressability.However,thereismoneythatthebuyerisspendingthatgetssoakedupinthesupplychainthatdoesnotmakeittothepublisher(i.e.,platformfees).

Overthepastseveralyears,platformshavebeenusedtodrivemoreeffectiveadvertisingtopotentialconsumersandhavegainedshareofhowadsareboughtandsold.Walledgardens,orclosedecosystemsinwhichalloperationsarecontrolledbytheecosystemoperator,continuetodrivegreateradoptionofprogrammatic,andhavebeenparticularlyadeptatattractingsmallbusinesses.

InnovationofNewAdTechnology

In2017,theIABInternetAdvertisingRevenueReporthighlightedtechnologicaladvancesandnewbusiness

modelsasadrivingforceoftherobustadvertisingenvironment.Sincethen,advertisingplatformsandpublishershavecontinuedtoinnovateintheiruseofdataandothertechnologiestoimprovetheeffectivenessoftheiradvertisements.

Theever-increasingsophisticationofdigitaladvertisingoperationshasproventobeinvaluabletobrands,advertisersandpublishersoverthelastseveralyears.Drivenbythevastamountsofdataavailable,andasthelabyrinthofplatformnetworksgetsever-morecomplicated,AIisontracktokeepthemomentumgoing.AIwillallowadvertiserstoharnessdataanddeliveradswithhigherperfection(thinkgreaterrelevance,matchedcontext,andgreaterpersonalization),and,as

aresultdriverevenue-earned

peradhigherandhigher.ThisdevelopmentanditsadoptionhasbeenofparticularvaluetoDTCbrands,wherethecostefficiencyofcustomeracquisitionbecomesadefiningfactorinthelongtermsuccessofthebusiness.Inanyregard,weexpecttoseetheconvergenceofbigdataandAIpowercontinuetodriveinnovationindigitaladvertisingtonewlevels.

SmartCompanieswillneedtodeftlynavigatetheuseofthesepowerfulnewtoolswithconsumerconcernsoverprivacyandtheuseofhighlypersonaldata.Overzealousorinappropriateuseofthesetoolscanleadconsumerstothetippingpoint,andleadtothe

callformajorchangestotheoverallenvironment.

Blockchaintechnologycontinuestobeabuzzwordwhenitcomestodigitaladvertising.Althoughthedigitalledgerandsmartcontractmayfillanimportantneed,thistechnologyisstill

initsinfancywithrespecttodigitaladvertising.Regardlessofwherewestandatthemoment,blockchainpresentsanumberofopportunitiesforthedigital

advertisingspace,andpublishersandadvertiserscontinuetoexplorehowthesetechnologiescanbeimplementedtoconnectwiththedigitaladvertisingstackwithgreaterefficiency.InfactPwCrecentlyissuedareport“Isblockchaintheanswertodigitaladvertising’strustgap?”whichprovidesfurtherinsightsastothepossibleopportunitiesblockchaincanprovideintheadvertisingecosystem.*

5Gtechnologyisloominglarge.Intheveryforeseeablefuture,datawillbeprocessedandexchangedatincrementallyhigherspeedsthanwe’veexperiencedthusfar.Inanticipation,enterprisesacrosstheUnitedStatesarelookingtoput

themselvesinthebestpositionfortheroll-outof5Goverthecourseoftheyear.5Gwillenableadvertiserstooperateathigherefficiencywiththepotentialtoreducelatency,spuradvancementsinlocation-basedtechnologyandprogrammatictechnology,aswellastoallowfordevelopmentsincreativeformats.

Whatthismeansforconsumersisanoverallimprovementinthemobilevideoexperience.

*PwC,IsBlockchaintheanswertodigitaladvertising’strustgap?,2019

|7

Quarterlygrowth

Revenuestotaled$31.4billioninQ42018

Totalrevenuesinthefourthquarterof2018were$31.4billion,$5.2billion(19.8%)higherthaninthefourthquarterof2017and$4.8billion(18.1%)higherthaninthethirdquarterof2018.

19.8%YoYgrowth

$31.4

$26.2

Q42017

Q42018

Q42017vs.Q42018revenue

($billions)

Q32017vs.Q32018revenue

($billions)

$26.6

Q32018

Source:IAB/PwCInternetAdRevenueReport,FY2018

PwC|IABinternetadvertisingrevenuereport

Desktopvs.mobile

Advertisingrevenuesfrommobiledevicescontinuetogrowfasterthantheoverallmarket,withmobileincreasingitsrevenueshareto65.1%in2018.

Asconsumerscontinuetoshifttheirviewingbehavior,advertisershavefollowedthem.Onayear-over-yearbasis,mobileinternetadvertisingrevenuesincreased39.7%,increasingitsshareoftotalrevenuesfrom56.7%inFY2017to65.1%inFY2018.Reflectingtheindustry’soverallgrowthisacompoundedannualgrowthrate(CAGR)overthepast10yearsof16.8%whichoverthepastfewyearshasbeenlargelydrivenbythegrowthofmobile.TherapidgrowthofthemobileadvertisingplatformhasresultedinaCAGRof53.8%overthepastfiveyears.Mobilerevenuescontinuetobenefitfromadvancementsinsingle-clickeCommerce,creativeadformatsandplacementsonsocialmediasites.

Desktopvs.mobileinternetadvertisingrevenue

(Fullyearresults,$billions)

Desktop Mobile

$37.6

$69.9

$107.5

$38.2

$50.1

$88.3

$22.7

$26.0

$0.6

$1.6

$25.4

$30.1

$35.9

$31.7

$38.9

$20.7

$49.5

$36.6

$42.8

$12.5

$3.4

$7.1

$33.2

$35.7

$37.0

$59.6

$22.7

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Source:IAB/PwCInternetAdRevenueReport,FY2018

Historicalquarterlyrevenuetrends

Quarterlygrowthcontinuedupwardtrendreaching$31.4billioninQ42018

Nomattertheyear,thefourthquarterleadsthepackofadvertisingrevenuedollars.Fourth

quarter2018revenues($31.4billion)alonetops2010’sfullyeartotalof$26.0billion.

Quarterlyrevenuegrowthtrends1996–2018

Q42018

$31.4B

Q11996

$30.0M

($billions)

$35

$30

$25

$20

$15

$10

$5

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

$0

Source:IAB/PwCInternetAdRevenueReport,FY2018

Historicalrevenuemix

SecondhalfrevenueshelpFY18revenuesexceed$100billion

Second-halfrevenuestotaled$57.9billionin2018,anincreaseof$9.9billionfromsecond-halfrevenuesof2017.Second-halfrevenuesrepresented53.9%oftotalrevenuesin2018,aslightdecreasefromthe54.4%reportedin2017,butconsistentwiththebroadertrendofincreasedrevenuesinthesecondhalfofeachyear.Thecontinuedindustrygrowthandtheseasonalspikeinfourthquarteradspendbothcontributetothehistoricallyhighproportionofrevenuesinthesecondhalfoftheyear.

Historicalrevenuemix,firsthalfvs.secondhalf

($billions)

$88.3

$107.5

$27.5

$32.1

First6months

Last6

$32.8

$39.8

$40.3

$48.0

$49.5

$57.9

months $72.6

$23.4

$22.7

$26.0

$14.9

$16.8

$31.7

$17.0

$19.5

$36.6

$20.1

$22.7

$42.8

$23.1

$26.4

$49.5

$59.6

$11.5

$11.9

$10.9

$11.8

$12.1

$13.9

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Source:IAB/PwCInternetAdRevenueReport,FY2018

Revenueconcentration

Top10companiesaccountforthree-quartersoftotaladrevenuesinQ42018

75%ofinternetadvertisingrevenuesinQ42018remainconcentratedwiththetop10leading

ad-sellingcompanies.Thisis3%higherfromthepercentagereportedinQ42017(72%).Companiesranked11thto25thaccountedfor7%ofrevenuesinQ42018,aonepercentagepointdecreasefromthe8%reportedinQ42017.

Theconcentrationoftop10revenueshasfluctuatedbetween69%and77%overthepasttenyears.

%shareoftotalrevenues

Q42018

(quarterly,$billions)

$30

$25

$20

$15

$10

$5

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

$0

18%

Top10

companies

Top11-25

companies

Remaining

companies

7%

75%

Note:Totalsmaynotequal100%duetorounding.Source:IAB/PwCInternetAdRevenueReport,FY2018

FY2018results

Digitalvideoadvertisingrevenueshowedthelargestgrowthamongformatsinthefullyear2018report

Searchtotaledrevenuesof$48.4billioninFY

2018,up19.2%fromFY2017($40.6billion).

Search’srepresentationof45.1%oftotalinternetadvertisingrevenueforFY2018isslightlydownfromFY2017’s46.0%.

Digitalvideototaled$16.3billionforFY2018,up

$4.4billionor37.2%fromFY2017.

Banner*revenuestotaled$33.5billioninFY2018,representinga21.9%increasefromFY2017($27.5billion).Bannerrelatedadvertisingincludesadbanners/display($29.5billion),richmedia($3.0billion),andsponsorships($996million).

TheOther**category,whichaccountedfor8.6%oftotalFY2018revenueswasprimarilycomposedofclassifieds($3.8billion),leadgeneration($3.1billion),andaudio($2.3billion).

Advertisingformatrevenue,fullyearresults

FY2017

($88.3billion)

FY2018

($107.5billion)

SearchBanner*

Video

Other**

*Bannerincludes:AdBanners/Display,RichMedia,andSponsorship.

**Otherincludes:Classifieds,LeadGeneration,Audio,andUnspecified.

Note:Totalsmaynotequal100%duetorounding.Source:IAB/PwCInternetAdRevenueReport,FY2018

Q42018results

Asapercentageofoveralldigitaladrevenues,digitalvideoacrossdesktopandmobiledevicesincreased$1.4billionfromQ42017

TheSearchformattotaledrevenuesof

$13.8billioninQ42018,up19.5%fromQ42017($11.5billion).TheSearchformat’srepresentationof43.9%oftotalinternetadvertisingrevenueforQ42018isaslightyear-over-yeardecreasefromQ42017’s44.1%.

Digitalvideototaled$5.1billionforQ42018,up

$1.4billionor38.9%,fromQ42017’s$3.7billion.

Banner*revenuestotaled$9.7billioninQ42018,representinga15.2%increasefromQ42017($8.4billion).Bannerrelatedadvertisingincludesadbanners/display($8.6billion),richmedia($843million),andsponsorships($305million).

TheOther**category,whichaccountedfor8.8%ofQ42018revenuesisprimarilycomprised

ofclassifieds($1.1billion),leadgeneration($924million),andaudio($711million).

Advertisingformatrevenue,fourthquarterresults

Q42017

($26.2billion)

Q42018

($31.4billion)

SearchBanner*

Video

Other**

*Bannerincludes:AdBanners/Display,RichMedia,andSponsorship.

**Otherincludes:Classifieds,LeadGeneration,Audio,andUnspecified.

Note:Totalsmaynotequal100%duetorounding.Source:IAB/PwCInternetAdRevenueReport,FY2018

Historicaltrends(desktopvs.mobile)

Mobileastheleadingdevice

Mobileadrevenuesrepresented65.1%oftotalFY2018revenues,ascomparedto56.7%oftotalrevenuesreportedinFY2017and50.6%in

FY2016.

Mobileadrevenuesarethoserevenuesgenerated

onmobiledevices,includingsmartphones

andtablets.

Historicaldesktopvs.mobiletrends,fullyearresults

($billions)

Desktop Mobile

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

Source:IAB/PwCInternetAdRevenueReport,FY2018

Formats(desktopandmobile)

Videoisbecomingapreferredmethod

Ondesktop,mostformatsareexperiencingflatorsmallrevenuedeclines.Videoistheonlyformatwithmeaningfulgrowth,up6.6%fromtheprioryear.

Mostformatsshowedstronggainsonmobiledevices,withSearchandBannerup37%and36%,respectively.Butvideoonceagainwastheleadinggrowthformat,up65%overtheprioryear.

Advertisingformatrevenue,desktopvs.mobile

Search

Banner* Video Other**

Desktop

FY2017 FY2018

Mobile

7% 6%

FY2017 FY2018

*Bannerincludes:AdBanners/Display,RichMedia,andSponsorship.

**Otherincludes:Classifieds,LeadGeneration,Audio,andUnspecified.

Note:Totalsmaynotequal100%duetorounding.Source:IAB/PwCInternetAdRevenueReport,FY2018

Digitalvideo(desktopvs.mobile)

DigitalvideodominancestrengthensshareofmobileanddesktopgrowthinFY2018

Totaldigitalvideo,includingmobileanddesktop,roseto$16.2billioninFY2018,up37.2%from$11.9billioninFY2017.

Growthofdigitalvideoonsmartphonesandtabletscontinued,reaching$10.2billioninFY2018,a65.2%risefromFY2017.

Videoadrevenuesonmobiledevicesnowcomprise62.9%ofalldigitalvideoadrevenues,upfrom52.2%intheprioryear.

Historicaldigitalvideorevenues,fullyearresults

($billions)

$10.2

Desktopvideo Mobilevideo

$4.9

$4.0

$5.7

$6.2

$6.0

FY2016

FY2017

FY2018

Source:IAB/PwCInternetAdRevenueReport,FY2018

Socialmedia

Socialmediaadvertisingrevenuegrows30.6%in2018to$28.9billion

Forthesecondhalfof2018,socialmediarevenuewas$15.8billion,withfullyearrevenuestotalling$28.9billion,bringing30.6%growthoverFY2017.Socialcontinuestoout-pacetheoverallindustry,howevergrowthhasbeenslowingandiswellbelowthe46.6%compoundannualgrowthrateofsocialfrom2012to2018.

Socialmediasitestendtofosterconsumerinteractionandduringatimewhencapturingtheattentionoftheconsumerissocritical,itisnocoincidenceweareseeingsocialmediadriverevenue.Ripewithvariousformatsprimedtotakeadvantageoffuturetechnologies,revenuederivedfromadvertisementsonsocialmediasitesisexpectedtocontinuetogrowinthefuture.

Note:Wedefinesocialmediaasadvertisingdeliveredonsocialplatforms,includingsocialnetworkingandsocialgamingwebsitesandapps,acrossalldevicetypes,includingdesktop,laptop,smartphoneandtablet.

Socialmediaadvertisingrevenue,fullyearresults

$2.9

$4.1

($billions)

1sthalf

2ndhalf

$1.2

$1.7

$1.9

$2.6

2012 2013 2014

$9.5

$12.6

$13.1

$15.8

$4.4

$6.4

$7.0

$9.3

2015 2016

2017

Source:IAB/PwCInternetAdRevenueReport,FY2018

PwC|IABinternetadvertisingrevenuereport |17

Digitalaudio

In2018,digitalaudioadvertisingrevenuereached$2.3billion

Thisrepresentsa22.9%increaseoverFY2017’srevenueof$1.8billion.Alargepercentageofthisgrowthisfrompodcastadvertisingrevenues.Podcastadvertisingrevenueswillbesharedinaseparatereportatalaterdate.

Thoughdigitalaudioadvertisingrevenuescontinuetogrowyear-over-year,itsshareofthetotalinternetadvertisingrevenuepieremainedat2.1%inFY2018.

Digitalaudioadvertisingrevenue,fullyearresults

($millions)

Desktopaudio

Mobileaudio

Fullyear2017

$522

$462

Fullyear2018

13%

YoYgrowth

$1,369

$1,729

26.3%

YoYgrowth

Total

$1,831

$2,251

22.9%

YoYgrowth

Source:IAB/PwCInternetAdRevenueReport,FY2018

Revenuesbypricingmodel

SlightshiftinpricingmodelstoCPM

61.8%ofFY2018internetadvertisingrevenueswerepricedonaperformancebasis,downafewpointsfromthe62.3%reportedinFY2017.ThedecreaseintheuseofthispricingmodelhasshiftedtotheCPMmodel.

34.9%ofFY2018internetadvertisingrevenueswerepricedonaCPMbasis,uponebasispointfromthe33.9%reportedinFY2017.

3.3%ofFY2018internetadvertisingrevenueswerepricedonahybridbasis,aslightdecreasefromthe3.9%reportedinFY2017.

Revenuebypricingmodel,fullyearbasis

($billions)

CPM

pricingmodel

Performance

pricingmodel

Hybrid

pricingmodel

3.