2012 Internet ad revenues break another record

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IAB / Interactive Advertising BureauDigital ad revenues climbed to a milestone high of $36.6 billion in 2012, says the IAB Internet Advertising Revenue Report for all of 2012. That number marks a 15% rise over 2011’s full-year number, which been the highest on record, at $31.7 billion. The report also shows that Q4 numbers, at $10.3 billion, rose by 14.9% from $9 billion in Q4 2011. That’s an uptick of 11.6% over Q3 2012, which came in at $9.2 billion.


For the second year in a row, mobile achieved triple-digit growth year-over-year. The past year saw the mobile category surge 111% to $3.4 billion, pivoting off of 2011’s record-breaking 149% YOY rise to $1.6 billion. Mobile accounted for 9% of total internet ad revenue in 2012.

Digital video, a component of display-related advertising, brought in $2.3 billion, marking a significant year-over-year increase of 29% in 2012, compared to $1.8 billion in 2011.

Search revenues in 2012 totaled $16.9 billion or 46% of 2012 revenues, up 14.5% from $14.8 billion in 2011.

Display-related advertising revenues in 2012 totaled $12 billion or 33% of 2012 revenues, up almost 9% from $11 billion in 2011.

Retail advertisers continue to represent the largest category of internet ad spending, accounting for 20% in 2012, followed by financial services, which is responsible for 13% of the year’s revenues.

“These record-breaking numbers represent a paradigm shift when it comes to marketers recognizing the role a multiplicity of screens plays in effectively reaching today’s consumers,” said Randall Rothenberg, IAB CEO. “Mobile, in particular, soared due to its ubiquity and intrinsic ability to serve as a powerful digital dashboard that travels with you from morning commute to nighttime video viewing and beyond. The significant increase in digital video also underscores the importance of the upcoming Digital Content NewFronts and the vitality that sight, sound and motion play for both consumers and advertisers in the digital era.”

Here are the results from the full year in comparison with last year’s numbers:

Revenue (Ad Formats)

Full Year 2011

Full Year 2012

%

$

%

$

Search

46.5%

$14,768

46.3%

$16,916

Classifieds and Directories

8.1%

$2,580

6.6%

$2,430

Lead Generation

4.8%

$1,522

4.6%

$1,689

E-mail

0.7%

$213

0.4%

$156

Mobile

5.0%

$1,596

9.2%

$3,370

Display-related
  -Digital Video Commercials

5.7%

$1,809

6.4%

$2,330

  -Ad banners / display ads

21.5%

$6,811

21.1%

$7,721

  -Sponsorships

3.5%

$1,121

2.3%

$845

  -Rich media

4.1%

$1,315

3.0%

$1,113

    Total display-related

34.8%

$11,056

32.8%

$12,009

 

Revenue (Pricing Models)

Full Year 2011

Full Year 2012

%

$

%

$

Impression-Based

31.3%

$9,926

32.0%

$11,709

Performance-based

64.6%

$20,491

65.9%

$24,093

Hybrid

4.2%

$1,318

2.1%

$768