The IAB has released the figures for Digital AdSpend in 2016. The IAB (of which Braodplace 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.”
Other highlights of the newly released research include:
Nearly three-quarters of display is traded programmatically
Display ad spend rose 26pc year-on-year to £3.77bn in 2016 – 72pc of which was traded programmatically (£2.71bn) – with significant growth coming from direct deals and private marketplaces.
Social Ad Spend up 38%
Ad spend on social media sites grew 38pc to £1.73bn, accounting for nearly half (46pc) of display. Social media spend on mobile alone grew 54pc. Content & Native ad spend – which includes ‘advertorials’ and ads in social media news feeds – increased 28pc to £1.17bn (31pc of display).
Search and Classifieds
Driven by mobile, which grew 48pc, paid-for search overall grew 15pc to £4.99bn – a 48pc share of digital ad spend. Classifieds, including recruitment, property and automotive listings, grew 8pc to £1.48bn (14pc share).
All this is reassuring for us as a company, to know that the industry is growing, is successful and going from strength to strength. For our customers, you can feel a little bit smug knowing that you’re following the right trend in terms of ad formats that work. Plus, your agency happens to be Google’s Top Performing Premier Partner… in case you didn’t hear about that?