Mobile display advertising fuels online ad spend, according to IAB research

Anne Freier

In Mobile Advertising

November 30, 2016

iab europe
Online advertising spending rose 13.4% to €18.6bn during the first half of 2016 driven by mobile according to new research from the IAB Europe in collaboration with IHS Markit. Growth within digital is likely to continue for the full year 2016.
Online ad spend on the rise
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Mobile display was a prominent driver of this increase, growing 61.3% whilst mobile search grew by 57.3%. Mobile display featured prominently in the CEE region with an increase of over 100%. The region also boosted overall growth at 16.2% whilst more mature markets such as West Europe gained 13.1%.
Mobile display boosts results
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The rise in display advertising outpaced search during the first half of the year at a growth rate of 18.2% compared to 13.3 for search. Display reached a near €7bn in H1 2016 representing 37% of the total online advertising whilst search accounted for 47%. Central and East Europe display advertising noted a 27.1% rise among formats. This could point towards an improvement in targeting but also features and data strategies.
Online ad spend across Europe
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Eleni Marouli, Principal Analyst of IHS Markit said:
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“Strong economic growth in all the European Big 5 for the first time since 2010, underpinned the surge in online advertising in H1 2016, lifting all formats up from H1 2015. Mobile was the key driver of growth in both search and display, accounting for one in three euros spent in Europe. IHS expects mobile to continue to play a primary role in European online advertising and to maintain growth at a double-digit level for FY 2016.”

According to a recent IAB Europe Attitudes to Digital Video Advertising survey, 90% of advertisers and media companies have jumped on board with digital video advertising strategies. Overall, video ad spend grew at a rate of 46% to €1.6bn.
Joy Dean, Partnerships Director, UK & Western Europe of Widespace, adds:

“Consumers are spending much longer consuming content online via mobile, creating an even greater opportunity to connect, one-to-one, on these devices than ever before. Alongside this, the increased abundance of premium, rich media ad formats – in particular video formats that go beyond pre-roll, such as out-stream – are pushing the shift and attracting brand ad spend that’s usually spent on more traditional channels, such as TV. We are excited to see how the market is beginning to think differently about mobile and mobile video as a branding tool.”