IAB: $10 Billion Digital Ad Growth Driven By Mobile


US online ad revenue hit $59.6 billion in 2015 with $10 billion digital ad growth driven by mobile ads.

The 2015 digital ad revenue is $10 billion more than in 2014 with mobile ads accounted for 35% of the ad revenues in the US compared to 25% the previous year according to IAB 2015 Internet Advertising Revenue report conducted by PricewaterhouseCoopers (PwC).

Programmatic advertising is anticipated to increase as a transaction practice according to IAB. The average CPM for 2015 was $12.09, up from $11.35 in 2014, a negligible increase in average CPMs over the past few quarters due to fraud, viewability and measurement issues.

Nonmobile digital advertising slowed over the past six years to a 9% compound annual growth rate (CAGR), while mobile had a 100% CAGR over the same time period. Clearly, digital advertising growth continues to outpace other types of advertising despite the high-priced digital ad formats like sponsorships which only accounts to 1% of revenue ($649 million).

“[It is] a means to reduce friction in the digital advertising sales model, but also as a means to personalize content and advertising for consumer attributes, driving more relevancy and consistency,” said Matt Hobbs, a PwC partner focused on Internet advertising.