Internet advertising

Internet advertising

 

Internet advertising markets by growth and scale


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Search will account for the bulk of Internet ad revenue

Video CAGR outstrips the rest

Key insights at a glance

1

Internet advertising is closing in on TV advertising to become the largest entertainment and media advertising segment. In 2013, total Internet advertising revenue was US$117.2bn. The figure will increase to US$194.5bn in 2018, a 10.7% CAGR meaning that it is closing in on TV advertising revenue as the largest advertising segment. This is a significant advance from 2009, when total TV advertising revenue was US$132.0bn and total Internet advertising revenue just US$58.7bn.

 
2

Mobile advertising will overtake classifieds in 2014. Global mobile Internet advertising revenue is forecast to leapfrog classified advertising to become the third-largest Internet advertising channel. But after four particularly strong years between 2010 and 2013 driven by the launch of the iPad, annual mobile revenue growth is falling back to the levels seen before the iPad’s introduction and advertisers must do more than simply migrating large-screen banners to handhelds.

 
3

Search will retain its dominant position. Global paid search Internet advertising has the largest share of total Internet advertising revenue, at US$48.4bn in 2013. While its overall share of the market will diminish as video and mobile advertising become increasingly important, continued growth will see search pull further ahead of the other categories of Internet advertising in terms of revenue generated, hitting US$73.8bn in 2018.

 
4

Within Internet advertising, video will see the sharpest growth. Global video Internet advertising revenue will rise at a 23.8% CAGR to 2018, ahead of mobile’s 21.5% CAGR. The largest video service, YouTube, spent years perfecting its pre-roll ad format. Now TrueView ads are deployed widely, and new consumer devices are multiplying distribution.

 
5

Advertisers are looking to programmatic and native advertising to improve display ad performance. While search offers spend and targeting efficiencies, advertisers have grown frustrated with the worsening performance of online display ads. In response, many are moving toward programmatic ad-trading platforms that offer greater planning control, while others are adopting native advertising formats, so named because they match the form and function of the user experience.

 
6

Tracking users in a multi-device world presents new challenges. Targeting users of the first generation of Internet devices was relatively straightforward, thanks to desktop Web browser cookies. But many new mobile devices lack cookie tracking, while the use of multiple devices by individual consumers further complicates targeting. In a more splintered world, efforts are under way to help advertisers improve their targeting of consumers.



What data can I access by purchasing an online subscription?

The following data is available for Internet advertising for 54 countries (where available).

Revenue data:

  • Total Internet advertising revenue
  • Total wired Internet advertising revenue
  • Display Internet advertising revenue
  • Paid search Internet advertising revenue
  • Classified Internet advertising revenue
  • Video Internet advertising revenue
  • Total mobile Internet advertising revenue

Segment definition

This segment comprises spending by advertisers either through a wired connection or via mobile devices. This revenue is digital, and from advertiser spending.

Total Internet advertising comprises online television, newspaper, consumer magazine, trade magazine, directory advertising and online radio (for North America only), which are also all included in their respective segments. The wired sub-segments consider paid search, display, classified and video formats. Figures for total advertising eliminate any double counting.

Search Internet advertising involves placing ads on web pages that show results of search engine queries (e.g. Google AdWords).

Display Internet advertising comprises revenues from traditional ads placed on web pages in many forms, including banner ads. Other Internet advertising formats (affiliates, rich media, email) are also included under this category, but video advertising, search and classifieds are excluded.

Classified Internet advertising is advertising posted online in a categorical listing of products or services. A fee is paid by an advertiser to display an ad or listing around a specific vertical such as automotive, recruiting or real estate.

Video Internet advertising comprises revenue from in-stream video advertising (pre-rolls, mid-rolls, post-rolls) only. It does not include in-stream banner display advertising or out-of-stream video advertising. It includes revenue from both traditional broadcasters and Internet-based websites, including YouTube.

Mobile Internet advertising comprises all advertising delivered to mobile devices via formats designed for the specific device. This revenue is not split out by sub-segments (e.g. display, search, or classifieds). This revenue is digital.

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Regions/countries covered

North America

EMEA

 

Asia Pacific

Latin America

Canada
United States

Western Europe
Austria
Belgium
Denmark
Finland
France
Germany
Greece
Ireland
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom

Central and Eastern Europe
Czech Republic
Hungary
Poland
Romania
Russia
Turkey

Middle East/Africa
Israel
Middle East/North Africa †
South Africa

Australia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Pakistan
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam

Argentina
Brazil
Chile
Colombia
Mexico
Venezuela

 †Comprises Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, and the United Arab Emirates