U.S. Internet Advertising Revenues Crossed $10 Billion In Q2, 2013 [REPORT]

Must Read

Elon Musk Added Over $100 Billion To His Net Worth In Just 1 Year, Leaves Jeff Bezos Behind

Jeff Bezos may the world's richest person in the world but it's Elon Musk who has been...

iPhone 12 Plagued With Serious Problems: Should You Buy It, Still?

A serious problem with Apple iPhone 12, identified recently, is good enough to give a second thought...

Elon Musk Overtakes Bill Gates And Becomes the 2nd Richest Person in the World

It's been a good week for Elon Musk and his electrical vehicle business Tesla. Earlier this week,...

Investment by companies on Internet advertising is growing at exponential rate in last couple of years. With exploding increase in number of internet users, majority of firms are relying on marketing funda of  ”Advertise where your customers are”  and spending greater share on Internet advertising compared to traditional marketing methods. Internet advertising revenues are spiking higher than ever, specially in the U.S, where internet advertising revenue totaled to nearly $20 Billion in Q1 and Q2 together.

Is the U.S. Internet Advertising Market Stagnating ?

According to the report by PwC on Online advertising revenues, the Internet advertising industry in the U.S is showing significant growth in range of 15 to 20% on Y-O-Y basis. Total revenue in Q2 of 2013 reached about $ 10.3 Billion, whereas in Q1 it was about $9.8 Billion, depicting on increment of 5% between 2 quarters. On a half-yearly performance comparison, Online Advertising revenue of H1 2013 was $3.04 Billion more than H1 2012. Increasing awareness of online marketing especially social media and mobile marketing has contributed largely to above increment factor. Internet advertising revenue will continue to zoom high with more number of firms using online platform to acquire customers.

internet advertising revenue trends graph1

If we look at growth on Q-O-Q basis, the industry recorded 4.6% increase in Q2, 2013 in comparison with the earlier quarter. The overall revenue reached to $10.26 billion in Q2, 2013 which is nearly $1.5 billion more than same quarter a year before, registering a growth of 17.6%.internet advertising revenue:  Q-O-Q comparison

Advertisements

 

If we compare Q2 revenues of last 4 years, significant increase of close to $5 Billion in internet advertising revenue took place. The overall Internet advertising budget in Q2 of 2009 was close to $5.4 Billion, which climbed up to $10.3 Billion in Q2, 2013, mainly due to various marketing initiatives opted by Social media sites like Face book and Twitter to attract advertisers and increasing user base in all the above networking sites.  The CAGR (Compound Annual Growth Rate) was approximately 20% for Q2 growth rates in last one decade. Increasing global mobile users has also contributed largely towards online advertising revenues.

internet advertising revenue:  Q2 trends 2003-13

The report also highlighted an interesting trend that has been continuing for last few years; companies spend more on internet advertising during 2nd half of a year when compared to 1st half. About $62 Billion was invested during 2nd halves in last 4 years (2009-12) which is way higher than $54.9 Billion in 1st halves. This is mainly because of huge amount spent on advertising by online firms during special occasions such as Christmas, Thanksgiving day, which drive maximum profits to online firms and brands.

internet advertising revenue: 1st HY vs 2nd HY comparison

Top 10 Ad-Selling Firms Accumulate About 70% Of Total Advertising Revenue!

Top ad selling companies like Google , Facebook and few more continue to dominate by keeping 70% of overall internet advertising revenue into their favor. Ad-selling companies ranked 11-25th position enjoy 12% of total revenue share. Companies are relying more on Internet giants such as Google, Facebook and Twitter for Internet Advertising, as majority of web users are accustomed to one of the these.

Search And Display Ads Continue To Dominate The Ad-Formats

Majority of advertisers are investing in search ads, as such ads are vital to drive consistent traffic to website by 1st page exposure on top 3 search engines ( Google, Yahoo, Bing). Search ads accounted for 43% of revenues in Q2,2013, amounting to $4.4 Billion, which signifies drop of 4% compared to previous quarter. However, display ads accounted for $3.1 Billion or 30% of total revenue, an increment by 8% compared to Q2,2012. Display ad is totally out-casting the search ad in terms of visibility and revenue. If search ads are classified under ‘pull medium’, for which user needs to search on an engine to trigger an ad, then display ads could be tagged as ‘push medium’ that requires just page views to drive an ad into the favor. In future companies are likely to invest more on display ads for better brand visibility and ROI.

Mobile revenues totaled 16% of  Q2, 2013 revenue, amounting to $1.6 Billion, up by 149% compared to Q2, 2012. Increasing usage of mobile devices has resulted in such enormous growth and the revenue from mobile section will continue to zoom higher in future.Lead generation owned a significant share of 4% whereas Email revenue formed 0.4% of total revenue.

Advertisements

internet advertising : ad format distribution

Future Trends

With increasing smart phone penetration Internet advertising revenue in the U.S. is likely to sway into mobile section, majority of firms would look for ad-medium which would fit best in small screen. Display ads will dominate over search ads as they are more effective and likely to increase website clicks. Online brands are bound to invest on social media marketing especially Facebook and Twitter as they are best when it comes to addressing the masses and improved analytic tools have helped advertisers in estimating their returns from social media sites. More number of firms are appointing teams dedicated to social media marketing as they are driving most of the revenues for online brands.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Backed By First-Time Shoppers, Flipkart And Amazon Dominated Festive Online Sales in India

It seems like Flipkart and Amazon squeezed the most out of the month-long festive season in India...

Amazon Gets Slapped With Penalty As GOI Prepares To Tighten The Noose On Ecommerce Players!

In a recent move, the Indian Government slapped Amazon on its wrist for not mentioning the country of origin detail for products...

Facebook’s Past Comes Back To Bite As South Korea Fines Them For 2018 Scandal

The social media behemoth Facebook Inc. (NASDAQ:FB) has once again proved they are the true arch-nemesis of modern-day user-privacy!

Amazon Future Group Dispute Deepens As Singapore Court Turns Down Future Group Plea

The dispute between Amazon and Future Retail is, apparently, far from over anything soon as the Singapore International Arbitration Centre (SIAC) has...

Google Pay Fee On Instant Transfer: An Indication Of Google’s Aggressive Monetisation Strategy?

Google has decided to levy fee on instant payment, starting from the US market. A few days back, Google...

Twitter Account Verification Is Back, But Has it Lost Its Mojo?

Twitterati queue up! As the Twitter account verification process which is responsible for awarding blue badges prepares to...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This