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Digital ad revenue up 13pc

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Significant growth in video and mobile advertising has led to digital ad revenue reaching $2.1 billion in the first quarter of 2018, an increase of 13 per cent year-on-year, according to latest figures.

The PwC/IAB Online Advertising Expenditure Report released today shows revenue from general display advertising increased 20.3 per cent year-on-year, highlighting a shift from more targeted methods of classifieds (+11.2 per cent) and search (+8.8 per cent).

Total revenues were down 3.5 per cent for the quarter compared to December 2017, reflecting the seasonal trends of Christmas period.

Video and mobile advertising each increased by almost 40 per cent compared to the last corresponding period. Video, which recorded revenue of $320 million in Q1, represented 42 per cent of total general display advertising.

Similar market success was observed in the print market, with NMI results released earlier this month indicating positive growth in ad revenue during Q1 2018. Digital revenue for news media publishers grew 10.1 per cent, led by significant growth in programmatic advertising.

“Our market is chameleon-like, mirroring the significant shifts in consumer behaviour towards mobile and video, so it’s little surprise to see an increased investment in these formats,” said Gai Le Roy, IAB director of research.

“While it’s likely we will see a continued softening in some of the more established digital ad revenue streams, we fully expect mobile and video advertising continue to surge as marketers explore and challenge the possibilities of digital to build trust and reputation for their brands.”

Automotive advertisers made up 18.3 percent of the share of digital display advertising spend, maintaining its status as the medium’s largest investors. Real estate and retail industries round out the top three categories.

Mobile advertising expenditure decreased to $909.1 million in Q1 following record growth in the December 2017 quarter. Fifty-six per cent of mobile advertising expenditure is attributed to mobile search, while 44 per cent is directed to mobile display. Smartphones continue to attract a greater share of advertising expenditure at 90 per cent compared to tablets’ 10 per cent share, increasing its share from the prior December quarter (80 per cent and 20 per cent respectively).

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