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Commentary on Internet Advertising Trends

Commentary on Internet Advertising Trends

Ryan Burch is the Managing Director of Cybba’s West Coast office. His expertise is in the design, implementation and maintenance of media and marketing strategies. He leads his team in developing Digital Strategy, Online Advertising and Conversion Rate optimization for their clients. For any inquiries, contact him at ryan.burch@cybba.com

The IAB finalized its 2017 internet advertising revenue report and the results are clear: mobile is king. Digital advertising budgets grew year over by 21% while all other media stayed relatively flat or declined.

It shouldn’t come as a surprise that mobile investment continues to accelerate, but you may be surprised by how much advertisers are now relying on mobile.

Consider this:

  • Mobile now makes up 57% of all digital ad revenue – an estimated $49.9 Billion in 2017.
  • More than half of search investment is from mobile, two-thirds of banner investment is mobile, over half of video revenue is mobile, and 75% of audio dollars are from mobile.
  • Mobile video grew by 54% year over year while other advertising types grew in the low to mid- 30%’s. Video on mobile is becoming commonplace as data speeds and activation on mobile networks get easier.
  • Growth in mobile revenue outpaced overall digital growth (36% mobile growth vs. 21% total growth).

The growth in mobile is expected as more consumers turn to their mobile devices to make purchases and consume content.

Perhaps the more looming shift in investment is that of brand dollars. Traditionally tied to TV and terrestrial radio, brand dollars continued to move into digital formats. Brand audio jumped 39% while banner advertising jumped 23% in 2017.

The IAB report was backward-facing, but we’re expecting video and audio to grow even more in 2018, especially via the expansion of more connected TV offerings from DSP’s. Also on the radar: GDPR is expected to push advertisers to more contextual media opportunities rather than utilizing data that may be deemed risky. This may push CPMs up, particularly on media for desirable niches.

You can view highlights of the report here.

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