Digital AdSpend for 2016 Announced… Mobile Driving Things Again!
The IAB has released the figures for Digital AdSpend in 2016. The IAB (of which Broadplace is the only Google Premier Partner to be a member) release these figures annually and we are always buoyed to see that the industry is going from strength to strength. And 2016 was no different, with ad spend topping £10 billion… Of which 48% was spent on paid for search, 37% on display and 14% on classified. This adds up to a 17.3% rise in ad spend – that is the highest annual growth for 9 years.• Mobile is driving almost entire growth, up 51% • Mobile video is the fastest growing ad format, up 103% The IAB cites “advertisers’ need to tap into people’s rising use of mobile to watch content” for the sharp rise in mobile video spend. With 50% of people’s internet time now spent on smartphones, it’s no surprising that advertisers are channeling a lot of their budget into mobile. In fact, spend on mobile now accounts for 38% of all spend, a sharp rise from just 4% five years ago. • Spend on mobile video is now at £693 million.
“The rise in people consuming mobile and video content has accelerated digital’s growth rate to its highest level for nearly a decade,” said the IAB UK’s Chief Marketing Officer, James Chandler. “Reaching the £10 billion threshold has been made possible by brands breaking the mould, trying innovative formats and making the most of video to reach and amaze people. It’s impossible to ignore the issues the industry is facing at the moment, but digital never stands still and these figures are testament to the long term strength and power of digital.”