Search Revenues Hit $8.7 Billion in First Half of 2013

Despite concerns about ad spend being down, the Interactive Advertising Bureau has released a report that makes the online advertising industry look fantastic. The first half of 2013 was a record high for online advertising revenues, coming in at $20.1 billion, an increase from $17 billion for the same period in 2012.

Ad Formats First Half of 2013

Revenue from search ads still continues to rise, despite concerns that changes to Google AdWords (the switch to enhanced campaigns) might have caused a reduction or shift in ad investments. Revenue from search was $8.7 billion in the first half of 2013, which was an increase of 7 percent from $8.1 billion for the first half of 2012.

Mobile revenue increased by 24 percent from the first half of 2012 ($1.1 billion) compared to the first half of 2013 ($1.3 billion) showing that the mobile ad industry shows no signs of slowing down its growth.

“Digital has steadily increased its ability to captivate consumers and then capture the marketing dollars that follow,” said Randall Rothenberg, President and CEO, IAB. “Mobile advertising’s breakneck growth is evidence that marketers are recognizing the tremendous power of smaller screens. Digital video is also on a positive trajectory, delivering avid viewership and strong brand-building opportunities.”

IAB also found that 46 percent of all online advertising revenue came from the top three advertising verticals. Retail was at 20 percent; Financial Services at 14 percent; and Automotive at 12 percent.


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