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Social/search: Mobile takes 51 per cent of digital ads

New research out of the US has shown mobile has grown to represent more than 50 per cent of advertising spend in 2016 – a digital first.

Digital advertisers spent a record $72.5 billion last year, or 51 per cent of total ad spend, according to PwC US for the Interactive Advertising Bureau. On a whole, digital advertising grew 22 per cent in the US.

While the Interactive Advertising Bureau said that digital giants Facebook and Google drove growth, the increase could be seen more broadly.

David Doty, the IAB’s executive vice president and chief marketing officer, said in an interview with The Wall Street Journal: “We are seeing major increases across the spectrum,” he said. “It’s not universal. There tends to be dominant players [in any medium]. But it’s not the case here that the growth is only theirs. There are upticks that go well beyond [those two companies].”

Instagram gains 100m users in 4 months

Visual social networking site Instagram has grown to 700 million users after reaching the milestone of 600 million only four months ago.

Instagram is now twice the size of Twitter and has more users adopting Snapchat clone ‘Instagram Stories’ than Snapchat’s user base.

The platform currently has 1 million active advertisers, double the number it had in September 2016. In March, developers announced they were exploring new features for business including bookings.

Instagram’s growth has seriously affected Snapchat’s revenue. Following Instagram integrating several of Snapchat’s key features such as stories and private direct messaging, Snapchat has deprioritised foreign markets, with many awaiting parent company Snap’s first earnings report next month.

Twitter revenue falls 8pc


Despite its growing user base, social media company Twitter has posted a loss of $61.6 million in its first quarter results. The loss represents a total revenue fall of 8 per cent, the company’s first drop in year-on-year quarterly revenue.

While advertising makes up 85 per cent of the company’s revenue, global ad revenue fell 11 per cent in the first quarter.

Twitter’s adoption of live video is one of its biggest draws for advertisers. During the first quarter, Twitter’s partners, such as National Hockey League and Billboard, streamed more than 800 hours of live video. The content is popular with advertisers as more than half of its viewers are under 25.

The 11 year old company is still growing its user base with 14pc growth since this time last year. While the new growth has not been directly attributed to US President Donald Trump’s preference for the platform, Twitter has confirmed that new users have been more politically orientated.

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