IAB’s recently published annual report shows that 35 % of the ad revenue growth comes from mobile search and display for social media ads.
Insight
There has been significant growth in ad revenue related to social media advertisements and mobile ads that appear on browsers.
There has been a record-breaking double-digit increase in the net ad revenue since last year. A net gain of 20.4 % has been observed over the $ 49.5 Billion revenues in 2014, and it is still increasing. The increase is expected to double by the end of 2016 making a staggering increase of over 40 % increase since 2014.
Source : marketingland.com
The beginning of mobile and social media ad revenue
It was 2010 when mobile phones started to play a big role in the US total ad spends on digital content and media. Since then, it has increased by 100 % CAGR as compared to just 9 % growth in revenue from non-mobile sources over the past 5 years.
Social media ads are much recent and are already more promising in terms of rate of increase per year than mobile ads. It started to become prominent in the year 2012 when Facebook, the social networking giant started to introduce the biggest potential revenue section of the internet – the social media advertisement revenue. Not just that, with a drastic increase in the number of ads posted on Facebook per day, it now stands at the second biggest source of ad revenue in the world after Google’s AdSense.
Social media ads are a new category of emerging market for advertisement besides the already established but young market of mobile and digital ads.
In the year 2013, the ad revenue drawn from the internet exceeded the revenue drawn from television broadcast for the first time in the history of digital media and advertisements.