Here’s something that may lead you to add a little more spiced rum to your Egg Nog.
U.S. advertisers invested $17.6 billion in digital advertising in Q3 2016, according to the latest IAB Internet Advertising Revenue Report, released Wednesday (12/28) by the Interactive Advertising Bureau (IAB) and prepared by PwC US.
This marks the highest Q3 for digital advertising spending on record, and represents a 20% increase over the same time period in 2015. It also accounts for a 4.3% increase over Q2 2016.
RBR + TVBR OBSERVATION (full text below, for subscribers): Instead of grabbing a bottle of Brioschi, consider the ways your media properties can inject themselves into the digital landscape. Digital dollars are not going to decrease anytime soon. So, make yourselves a 360-degree media company with full digital capabilities.
“The momentum of advertising in mobile, digital video, and other innovative formats is undeniable,” said IAB EVP/CMO David Doty. “These record-setting third quarter revenue figures reflect marketers’ trust in the internet’s power to connect with today’s audiences.”
David Silverman, a partner at PwC US, added, “Digital has become a critical part of advertisers’ marketing strategies. Increasing media consumption on interactive screens will surely lead to even more investment in the digital landscape.”
The following chart highlights quarterly ad revenue since IAB began measuring it in 1996; dollar figures are rounded.
Q3 2016 revenue is estimated based upon a representative sample of the overall survey respondents. The data is compiled directly from information supplied by companies selling advertising on the internet. The survey includes data concerning online advertising revenues from web sites, commercial online services, free e-mail providers, and all other companies selling online advertising.
The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first and third quarters. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information.
Past reports are available at iab.com/adrevenuereport.
RBR + TVBR OBSERVATION: Instead of grabbing a bottle of Brioschi, consider the ways your media properties can inject themselves into the digital landscape. Digital dollars are not going to decrease anytime soon. So, make yourselves a 360-degree media company with full digital capabilities. We’ve read a lot about the not-so-accurate metrics involving Facebook. Now comes a report from Business Insider that Twitter’s Android app inflated video advertising metrics by as much as 35%. Holy moly, guacamole! Twitter actually issued advertisers refunds for over-billing from video campaigns that ran on its social network between Nov. 7 and Dec. 12, unnamed sources told Business Insider. This report came after The Wall Street Journal reported that Facebook “exaggerated a key metric advertisers use to assess the performance of their videos on the platform by potentially as much as 80% for more than two years.” Two years?! That’s far more significant than a not-so-accurate December PPM ratings report from Nielsen Audio, folks. Even so, here’s the bottom line: Metrics will be metrics, and digital will continue to increase its percentage of total advertising dollars allocated by CMOs and brand managers for effective advertising. So, now is the time to make sure your TV and radio stations have great digital capabilities, and that they are part of programmatic buying networks or are available to all digital media planners and media buyers. Did you know that there are a slew of local TV stations on Roku that offer station-produced programming, including live local newscasts? Kudos to Tegna and its NBC affiliated KGW-8 in Portland, Ore. Not only are full newscasts available via Roku, but all of the commercials are there just as if I was watching Channel 8 with rabbit ears. This is huge because it makes TV digital. Meanwhile, my Roku has both iHeartRadio and TuneIn. Very cool, as now every radio station on these platforms is a digital entity. Now, get your sales people to go sell your digital capabilities. Don’t let Facebook, YouTube and Twitter grab all of the dollars available in the digital world.