Being among the top 10 companies in Internet advertising continues to be important. Those companies, which presumably include Google and Facebook, earned 75% of all US digital ad revenue in Q4 2015, and over the past 10 years commanded 69% to 75% market share. In Q2 2015, companies in the 11th to 25th slots captured 9% of online advertising revenue, down from 11% the year before.
As digital advertising growth continues to outpace other types of advertising, and as overall ad spend remains flat, next year could mark a watershed moment in the industry.
Combined, broadcast and cable TV grabbed $66.3 billion in advertising in 2015. Using the average growth rate of the past decade, 17%, 2016 will be the year Internet advertising revenue (which does not include OTT or SVOD) exceeds TV revenue.
Not all was rosy for digital. High-priced formats like sponsorships barely even registered in terms of portion of overall digital ad spend, accounting for 1% of revenue ($649 million). Rich media was just 7% of revenue, or $1.3 billion. The IAB, however, did not break out branded content because native formats have too many variations to accurately categorize.
Enjoying this content?
Sign up to be an AdExchanger Member today and get unlimited access to articles like this, plus proprietary data and research, conference discounts, on-demand access to event content, and more!