Interactive ad spend exceeds $850 million in 2016 as social media and mobile dominate

Interactive advertising is continuing its upward trajectory, generating more than $890 million for the full year in 2016 and more than $244 million in the fourth quarter, according to the latest IAB/PwC Online Advertising Report. 

The yearly revenue falls just short of its prediction from the last quarter, which anticipated $900 million to be generated over the full year.

In 2016, the 11 percent increase year-on-year was fuelled by significant spending increases in mobile (61 percent) which reached reach $43.68 million for the year and social media (53 percent) which reached $58.89 million for the year. 

Fourth quarter figures show a similar trend, with social media (46 percent) and mobile (34 percent) being the two biggest growth channels. Online video follows a close third as it reports a 29 percent growth in the fourth quarter. 

Search and directories increased by 10 percent to reach more than $490.71 million for the year, capturing more than half of total interactive spend over the 2016 period. 

The display category, which mainly consists of general display, video and programmatic revenue, contracted one percent year-on-year growth and reached $142.89 million. Year-on-year increases in video (six percent) and programmatic (five percent) were offset by a decrease in general display advertising spend. 

The search and directory category extended its market leading run by reaching $136.89 million in the fourth quarter and more than half of all interactive spend. Its full-year revenue totals $490.71 million. 

The report reflects the driving role of smartphones, with phone-based advertising revenue increasing 16 percent year-on-year to reach $35 million. Working from a smaller base, tablet revenue grew 132 percent in the same period to reach just over $8 million. 

Q4 2016

Q3 2016

This year, IABNZ has also announced it will be updating the format of the NZ Interactive Revenue report in an effort to keep the report up to date with changes in the industry.

IABNZ CEO Adrian Pickstock says as the industry continues to evolve at a rapid pace, it’s important the report continues to keep pace with these changes in order to provide the most relevant and accurate reporting possible.

The new format will be released to members this June.

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