IAB: Digital Video Ads Up 36% From 2016

  • by Alex Weprin
    ,

    10 hours ago

According to the Interactive Advertising Bureau’s Internet Advertising Revenue Report, digital video advertising, including mobile and desktop, rose by 36% to $5.2 billion in the first
half of 2017.

In total, digital video advertising for the first half of this year was more than double what it was in the same period of 2015.

Perhaps more
notably: video advertising revenue from mobile devices surpassed video ads on desktop devices for the first time this year, reaching $2.6 billion. Desktop video advertising drew just under $2.6
billion. For comparison, in 2016, desktop video ads brought in $2.3 billion, while mobile video ads brought in $1.6 billion.

At the current pace, mobile video advertising will
surge ahead of desktop video advertising next year.

The dramatic shift in mobile video advertising is part of a larger shift toward mobile. The IAB report said that mobile
captured 54% of the digital ad marketplace with $21.7 billion, up 40% from 2016.

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Across all advertising formats, the report found that banner ads and video ads grew their shares
of the larger digital advertising pie, while search ads declined year over year. Video ads comprised 12% of all digital ads for the same period of 2016, compared to 13% this year. 

In a conference call, IAB research director Kristina Sruginis said that CPMs for digital video ads have been on the rise over the past year. 

“We see that video has gone up to an
average of $24.51 [per CPM], and that has gone up five percentage points over the year. Comparatively, we see that display is also up, it is increased about six percentage points to about $14.60 as
the average CPM,” Sruginis said.

The Internet Advertising Revenue Report was sponsored by IAB and conducted by PricewaterhouseCoopers, using both proprietary information from IAB
members, and publicly-available data.

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