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IAB: First Half 2015 Ad Revenues $27.5 Billion, Search Captures 50 Percent

Search is down on a percentage basis on the PC but up overall because of mobile, as are the real dollars.

Greg Sterling on October 21, 2015 at 1:56 pm

Enterprise Digital Analytics Platforms ñ New Market Intelligence Report

Today the IAB (and PriceWaterhouseCoopers) released its half yearly Internet Advertising Revenue Report. Total US digital revenues were $27.5 billion for the first half of 2015. Mobile ad revenues were $8.2 billion or just under 30 percent.

Search led all other categories, though its percentage share of desktop advertising is declining. A year ago, paid-search advertising represented 39 percent of desktop revenue. It now represents 37 percent. Overall, dollars are increasing, however; and when combined with mobile search, the contribution of search advertising to the digital total is 50 percent.

According to the report, desktop paid search brought in $10.1 billion in the first half vs. $9.1 billion a year ago. However, when mobile search revenues are included, the paid-search total climbs to $13.7 billion.

Mobile search revenue by itself was $3.6 billion. The overwhelming majority of that likely belongs to Google, given its mobile search market share. Indeed, digital ad revenue is highly concentrated among a few dominant companies.

The IAB estimates that “the ten leading ad-selling companies” captured nearly three-quarters (72 percent) of all ad revenue in the second quarter. That concentration is arguably even more acute in mobile.

For a more complete discussion of the IAB numbers, see Ginny Marvin’s overview of the entire report. You can also access a copy of the full report here.

About The Author

Greg Sterling

Greg Sterling is a Contributing Editor at Search Engine Land. He writes a personal blog, Screenwerk, about connecting the dots between digital media and real-world consumer behavior. He is also VP of Strategy and Insights for the Local Search Association. Follow him on Twitter or find him at Google+.