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Global Mobile Advertising Revenue 2015 The state of mobile advertising around the world September 2016

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Page 1: Global Mobile Advertising Revenue 2015 · Global mobile advertising revenue up 68% ... Global mobile ad revenue ... players across the mobile advertising ecosystem. Model also takes

Global Mobile Advertising Revenue 2015

The state of mobile advertising around the world

September 2016

Page 2: Global Mobile Advertising Revenue 2015 · Global mobile advertising revenue up 68% ... Global mobile ad revenue ... players across the mobile advertising ecosystem. Model also takes

Global mobile advertising revenue up 68% year-on-year to €37bn

€22,001

€ 37,010

€0

€5,000

€10,000

€15,000

€20,000

€25,000

€30,000

€35,000

€40,000

2014 2015

68%

Global mobile ad revenue (€m)*

Source: IAB Europe, IAB, IHS

Page 3: Global Mobile Advertising Revenue 2015 · Global mobile advertising revenue up 68% ... Global mobile ad revenue ... players across the mobile advertising ecosystem. Model also takes

Display takes lions share of display as messaging faces further pressure

6.9% 4.9%

47.4%42.8%

45.7%52.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015

Messaging Search Display

Source: IAB Europe, IAB, IHS

Mobile format shares in 2015

Page 4: Global Mobile Advertising Revenue 2015 · Global mobile advertising revenue up 68% ... Global mobile ad revenue ... players across the mobile advertising ecosystem. Model also takes

Mobile display advertising revenue growth outperforms other formats

93%

52%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Display Search Messaging

Source: IAB Europe, IAB, IHS

Mobile ad format growth by format in 2015

Page 5: Global Mobile Advertising Revenue 2015 · Global mobile advertising revenue up 68% ... Global mobile ad revenue ... players across the mobile advertising ecosystem. Model also takes

North America remains the largest mobile advertising market

€164 €248

€4,451

€7,510

€10,033

€262 €339

€7,029

€12,678

€16,703

€0

€2,000

€4,000

€6,000

€8,000

€10,000

€12,000

€14,000

€16,000

€18,000

Latin America Middle East & Africa Europe Asia-Pacific North America

2014 2015

2014 vs 2015: Mobile ad revenues by region (€m)

Source: IAB Europe, IAB, IHS

Page 6: Global Mobile Advertising Revenue 2015 · Global mobile advertising revenue up 68% ... Global mobile ad revenue ... players across the mobile advertising ecosystem. Model also takes

Minor changes in share of global mobile advertising revenue

0.7% 1.1%

20.2%

45.6%

34.1%

2014

0.7% 0.9%

19%

45.1%

34.3%

2015

Latin America

Middle East and Africa

Europe

North America

Asia Pacific

Source: IAB Europe, IAB, IHS

Page 7: Global Mobile Advertising Revenue 2015 · Global mobile advertising revenue up 68% ... Global mobile ad revenue ... players across the mobile advertising ecosystem. Model also takes

North America remains largest mobile display advertising market

€50

€83

€1,955

€3,716

€4,673

€96

€127

€3,138

€7,087

€8,915

€0 €1,000 €2,000 €3,000 €4,000 €5,000 €6,000 €7,000 €8,000 €9,000 €10,000

Latin America

Middle East & Africa

Europe

Asia Pacific

North America

2015 2014

2014 vs 2015: Mobile display ad revenues by region (€m)

Source: IAB Europe, IAB, IHS

Page 8: Global Mobile Advertising Revenue 2015 · Global mobile advertising revenue up 68% ... Global mobile ad revenue ... players across the mobile advertising ecosystem. Model also takes

Unchanged regional ranking in mobile search advertising

€34

€67

€2,274

€2,997

€5,032

€66

€98

€3,579

€4,612

€7,471

€0 €1,000 €2,000 €3,000 €4,000 €5,000 €6,000 €7,000 €8,000

Latin America

Middle East & Africa

Europe

Asia Pacific

North America

2015 2014

2014 vs 2015: Mobile search ad revenues by region (€m)

Source: IAB Europe, IAB, IHS

Page 9: Global Mobile Advertising Revenue 2015 · Global mobile advertising revenue up 68% ... Global mobile ad revenue ... players across the mobile advertising ecosystem. Model also takes

Gap between smaller and larger mobile advertising regions is less pronounced in messaging

€80

€99

€222

€328

€797

€101

€113

€312

€317

€979

€0 €100 €200 €300 €400 €500 €600 €700 €800 €900 €1,000

Latin America

Middle East & Africa

Europe

North America

Asia Pacific

2015 2014

2014 vs 2015: Mobile messaging ad revenues by region (€m)

Source: IAB Europe, IAB, IHS

Page 10: Global Mobile Advertising Revenue 2015 · Global mobile advertising revenue up 68% ... Global mobile ad revenue ... players across the mobile advertising ecosystem. Model also takes

Strong differences across format distribution globally

56%45%

53%

38% 36%

36%51%

45%

29%25%

8% 4%2%

33% 38%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Asia-Pacific Europe North America Middle East and Africa Latin America

Mobile ad revenue by format: regions

Display Search Messaging

Source: IAB Europe, IAB, IHS

Page 11: Global Mobile Advertising Revenue 2015 · Global mobile advertising revenue up 68% ... Global mobile ad revenue ... players across the mobile advertising ecosystem. Model also takes

Latin America mobile display market grows faster than other regions

53.9%

60.5%

90.7%

90.8%

92.4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Middle East and Africa

Europe

Asia-Pacific

North America

Latin America

Mobile display ad growth in 2015 by region

Source: IAB Europe, IAB, IHS

Page 12: Global Mobile Advertising Revenue 2015 · Global mobile advertising revenue up 68% ... Global mobile ad revenue ... players across the mobile advertising ecosystem. Model also takes

Mobile search growth in Latin America decoupled from relatively homogenous growth in other regions

47.4%

48.5%

53.9%

57.4%

92.1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Middle East and Africa

North America

Asia-Pacific

Europe

Latin America

Mobile search ad growth in 2015 by region

Source: IAB Europe, IAB, IHS

Page 13: Global Mobile Advertising Revenue 2015 · Global mobile advertising revenue up 68% ... Global mobile ad revenue ... players across the mobile advertising ecosystem. Model also takes

Definition of Mobile Advertising Formats

• Display: Any display advertising viewed or read on a mobile phone including rich media and video advertising. This could be browser-based as well as in-app.

• Search: Advertising appearing on specific word requests on search engines, viewed on a mobile device.

• Messaging (SMS/MMS): 3rd party ads in SMS and outbound SMS only - this includes advertising either within the body copy of an SMS / MMS message, or outbound messaging.

Page 14: Global Mobile Advertising Revenue 2015 · Global mobile advertising revenue up 68% ... Global mobile ad revenue ... players across the mobile advertising ecosystem. Model also takes

Methodology

Market size is gross, defined as after discounts, before agency commissions. Global market sizing and format split is based on reported data by local IABs, and a statistical and econometric model. Reported data has been harmonised to adjust for discounts and agency commissions. Modelled data is based on variables such as smartphone penetration, 3G subscriptions, messaging volume. The model has been refined based on benchmarking variables such as ad spend per capita, mobile subscriptions and 3G/4G penetration as well as through interviews with key players across the mobile advertising ecosystem. Model also takes into account typology of mobile ad markets in terms of maturity and format proliferation.

All data expressed in constant 2013 USD. Conversions into EUR based on 2013 USD-EUR foreign exchange rates.

Constant currency is used to eliminate exchange rate effects on growth rates.

Page 15: Global Mobile Advertising Revenue 2015 · Global mobile advertising revenue up 68% ... Global mobile ad revenue ... players across the mobile advertising ecosystem. Model also takes

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@iabeurope

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Alison Fennah - [email protected] Knapp - [email protected]

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