IAB, collaborating with PricewaterhouseCoopers, also saw tremendous growth rates in mobile, at 76% between Q2 2013 and Q2 2014. Mobile ad spend hit $5.3 billion, up from $3 billion in 2013.
The IAB report pinned total digital ad revenue at $23.1 billion for the first half of 2014. In contrast, banner ads in Q2 2014 dropped from 19% of total digital ad spend during the same period last year to 17%, totaling $3.9 billion.
“Consumers living online is no longer the exception – It is the rule,” Sherrill Mane, SVP of research, analytics and measurement at IAB, said in a press release. “Digital screens have become vital tools at every juncture of the day. It is no surprise that brand dollars have followed this growing movement at a steady clip.”
So what do rising CPMs mean for the industry as a whole moving forward?
“We’re going to continue to see more competition in market when it comes to grabbing for qualified impressions,” Xu-Weldon said. “This will continue to happen as we see more players get into programmatic, but also the way in which they get into programmatic.”
Xu-Weldon added that CPMs are not just based on behavioral targeting anymore. “It’s not just about conversions, it’s also about clients being able to have a conversation with the consumer in a much more valuable way that is going to expand the brand,” she concluded. “Players in this space will have to continue this conversation in mobile and in social.”