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Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue Half Year 2017 Update Questions? Kristina Sruoginis IAB Research Director [email protected]

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Digital Trends: Consumer Usage of Digital and its Influence on Ad RevenueHalf Year 2017 Update

Questions?

Kristina Sruoginis

IAB Research Director

[email protected]

Digital Usage Trends: Topline Executive SummaryHY’17 Update

2

• 253 million Americans accessed the internet via computer or mobile device in June 2017, spending 1.3 trillion minutes online.

• Overall digital ad revenue grew 23% from HY’16 to reach $40.1 billion for the First Half Year 2017.

• Consistently, the top 5 properties visited on any device via app or site have been Google, Facebook, Yahoo, Microsoft and Amazon.

• Over the course of a year (6/16-6/17), consumers have started to spend more time on Google (#1) than on Facebook (#2). Pandora maintains a strong third place in time spent online on any device.

• 193 million users spent 860 billion minutes online in June using a smartphone or tablet.

• The shift to mobile continues: 66% of time spent online is on a mobile device. (6/17: 860B mobile minutes)

• Ad dollars are now following: 54% of digital ad revenue for HY 2017 is from mobile advertising. (HY’17: $22B mobile)

• Internet advertising influences purchase decisions ranging from Electronics to Clothing, CPG, Auto and Finance. 39% of US adults are influenced by internet ads for Electronics.

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

Digital Usage Trends: Detailed Summary Points

3

Mobile vs. Desktop:•

• More consumers used a computer (221M) to access the internet than a mobile device (193M) although the number of monthly computer users is declining while mobile users grow slightly.

• 2 out of every 3 minutes spent online is on a mobile device.

• Monthly internet time spent on smartphones grew from 56% to 57% over the year (6/16-6/17), tablet time shrank from 11% to 9% and computer time online grew from 33% to 34%.

• Most visited properties are similar on desktop as on mobile, but time spent differs. Google and Facebook are consistently top 2 by any device or measure.

• After Facebook and Google, top properties in terms of time spent online include video streaming sites for desktop and audio streaming properties for mobile. Yahoo and Amazon appear in top 10 for both.

Mobile Apps vs. Web:

• More mobile time is spent on apps (87%) than mobile web (13%), smartphones (87%) than tablets (13%).

• Over the course of a year (6/16-6/17), consumers have started to spend more time on Google sites (#1) than on Facebook’s site (#2).

• In terms of apps, while consumers still spend the most time on Facebook’s app (#1), the gap between Facebook and Google’s apps (#2) is narrowing. Pandora’s app (#3) is almost as popular as Google’s apps

• 4 out of the top 10 mobile apps are exclusively music streaming apps

• While roughly two-thirds say they download apps, less than half pay for them, creating mobile ad opportunities.

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

Digital Usage Trends: Detailed Summary Points

4

Digital Video:

• Video ad revenue is up 36% from last year to $5.2 Billion for HY 2017. Half of video ad dollars are now from mobile.

• 227 million Americans streamed 46 billion videos and 23 billion video ads for a total of 170 billion minutes in June.

• Most Visited Video Properties: Facebook, Google, Yahoo, Comcast NBCu, Microsoft

• Most Streamed Video Properties: Google, Facebook, Yahoo, Microsoft, Vevo

• Video Properties with the Most Time Spent Streaming: Google, Facebook, Netflix, Twitch.TV, Vevo

Music and Audio:

• Digital audio ad revenue for the first Half Year 2017 has grown 46% to $603 million, with 75% of that revenue from mobile.

• 913 million consumers spent 143 million minutes in June on music entertainment properties via computer, tablet or smartphone apps or sites.

• Pandora is by far the leader in time spent on music entertainment sites or apps. #2 and #3, Spotify and Soundcloud, have grown over the year (6/16-6/17).

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

Digital Usage Trends: Detailed Summary Points

5

Social Media:

• 216 million consumers spent 213 billion minutes on social media in June 2017, which is roughly 34 minutes per person per day.

• Top social media properties visited in June 2017: Facebook, Twitter, LinkedIn, Snapchat, Pinterest

• Social media influences purchase decisions, especially in Electronics.

• As a result, social media ad revenue has grown 37% from a year ago to $9.5B for HY 2017.

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

Total Digital Population: The Overall View

Digital Trends:

Consumer Usage of Digital and its Influence on Ad Revenue

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

Quarterly revenue growth trends 1996-2016 ($ billions)

$0

$5

$10

$15

$20

$25

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The Big Picture: Online Advertising Revenue Continues Its Incredible Growth

7

Quarterly Online Ad Revenue Comparisons — Q1 2010 – Q2 2017

Source: IAB Half Year and Q2 2017 Internet Advertising Revenue Report

1996

$267M

HY 2017

$40.1B

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

Half Year 2017 Year-Over-Year Digital Ad Revenue Growth

$ B

illio

ns

*The Nielsen Company, MonitorPlus (Standard Calendar, Total includes B2B, National Internet (Display only), FSI

Coupons), Nov. 2017

Total Media Ad

Revenue Growth

(HY 2016 vs. HY 2017)

The Nielsen Company

estimates total media

revenues for HY 2017

decreased -2%

$32.7

$40.1

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

HY 2016 HY 2017

Digital Ad Revenue Growth (HY 2016 vs. HY 2017) (Mobile + Desktop)

23%

257,754253,530

Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

Total Unduplicated Internet Audience

Total UnduplicatedInternet Audience

9

The total audience accessing the internet via computer or mobile device is 253 million monthly visitors (or 78% of the US population of 325M*).

Monthly Unique Visitors (000), Dec 2015 – Dec 2016

(of any site or app via computer or mobile device)

ComScore US Media Metrix Multi-Platform, Total Unduplicated Internet Audience.

*US Census Bureau estimates US population to be 325M as of July 2017.

Computer and Mobile

253 Million Americans Access the Internet Monthly on Computers or Mobile Devices

Effective with January 2016 data, the comScore audience product suite (Media Metrix MP, Media Metrix, Video Metrix, Mobile Metrix) underwent methodology and processing enhancements affecting all markets and all audience products.

US Media Metrix Multi-Platform and Mobile Metrix data was restated for April 2017 and May 2017 data months related to duration data for Android smartphones.

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

1,480,8581,304,116

Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

Total Minutes (MM)

Total Minutes (MM)

US Consumers Spent 1.3 Trillion Minutes Online in June 2017Via Computer or Mobile Device

10

Monthly Total Minutes (MM) Jun 2017 – Jun 2017

(of any site, stream or app via computer or mobile device)

Source: ComScore US Media Metrix Multi-PlatformEffective with January 2016 data, the comScore audience product suite (Media Metrix MP, Media Metrix, Video Metrix, Mobile Metrix) underwent methodology and processing enhancements affecting all markets and all audience products.

US Media Metrix Multi-Platform and Mobile Metrix data was restated for April 2017 and May 2017 data months related to duration data for Android smartphones.

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad

Revenue

Monthly Internet Usage Summary

11

253 Million Users Access the

Internet Monthly on Computers or

Mobile Deviceson sites or apps(in Jun. 2017)

Source: ComScore US Media Metrix Multi-Platform Dec. 2016

1.3 Trillion Minutes

Spent

Online Monthly on Computers or

Mobile Deviceson sites or apps(in Jun. 2017)

714 Billion Views

of Pages, Videos or Apps

Monthly on Computers or

Mobile Deviceson sites or apps(in Jun. 2017)

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad

Revenue

39%

32%

23% 23% 23% 22%19%

18%16%

Electronics Clothing Dining Out Grocery Home Improvement Car/Truck Telecom Services FinancialServices/Insurance

Medicines

Impact of Digital: Internet Advertising Influences Purchase Decisions

12

39% of US adults say their electronics purchases are influenced by internet advertising

% Who Say Their Purchases are Influenced by Internet Advertising(in the Following Verticals)

Prosper Insights, Media Behavior and Insights data, Jan. 2017. n=16,644 US Adults 18+

(Food/

Cleaning/

Beauty)

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

Digital Trends:

Consumer Usage of Digital and its Influence on Ad Revenue

Desktop and Mobile Usage Patterns

232,264221,364

191,034 193,024

Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

Desktop

Mobile

One Year Trend of Unique Monthly Visitors on Desktop and Mobile

14

Monthly Total Unique Visitors (000) Jun 2017 – Jun 2017

Source: ComScore US Media Metrix Multi-Platform, Mobile Metrix

Effective with January 2016 data, the comScore audience product suite (Media Metrix MP, Media Metrix, Video Metrix, Mobile Metrix) underwent methodology and processing enhancements affecting all

markets and all audience products. US Media Metrix Multi-Platform and Mobile Metrix data was restated for April 2017 and May 2017 data months related to duration data for Android smartphones.

Overall, more consumers use a computer to access the internet than a mobile device

However, the number of computer users is declining slightly while the number of mobile users is growing slightly

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

66%34%

Most Time Spent Online Tends to be on a Mobile Device

15

2 out of every 3 minutes spent online is on a mobile device

ComScore US Media Metrix Multi-Platform, Total Internet Time Spent

Monthly Online Minutes, Jun. 2017

Time Spent Online by Device

On Desktop, Tablet or Smartphone (Mobile Browser or Apps)

Total

Mobile

Minutes

Total

Desktop

Minutes

Total

Mobile

Minutes

Effective with January 2017 data released in February 2017, the comScore audience product suite (Media Metrix Multi-Platform, Media Metrix, Video Metrix, Mobile Metrix) will undergo methodology and processing enhancements. All markets and all

audience products will benefit from these methodology changes at that time. Related to these enhancements, reported data may show a break in trend.

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

Total Tablet Minutes

Total Smartphone Minutes

Total Computer Minutes

Time Spent Online One Year Trend

16

More than half of all online minutes are spent on a smartphone

Source: comScore US Media Metrix, Mobile Metrix Jun. 16- Jun. ‘17, Total Internet Time Spent (MM)

(Monthly Minutes Spent Online (MM), Jun. 2016 – Jun. 2017)

Total Minutes: Digital and Mobile Audience Trend

33%

34%

56%

57%

11% 9%

Total Minutes

1.5T

Total Minutes

1.3T(Mobile Includes Browser and Apps)

Effective with January 2017 data released in February 2017, the comScore audience product suite (Media Metrix Multi-Platform, Media Metrix, Video Metrix, Mobile Metrix) will undergo methodology and processing enhancements. All markets and all

audience products will benefit from these methodology changes at that time. Related to these enhancements, reported data may show a break in trend. US Media Metrix Multi-Platform and Mobile Metrix data was restated for April 2017 and May

2017 data months. The restatement is related to duration data for Android smartphones

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

66%54%

34%46%

Time Spent Online:Mobile vs. Desktop

Ad Revenue:Mobile vs. Desktop

Desktop

Mobile

ComScore US Media Metrix Multi-Platform,, Total Internet Time Spent (MM)

Mobile as a Percent of Digital

Time Spent vs. Ad Revenue

Jun. ‘17 First Half Year 2017

Mobile Advertising Revenue is Catching Up to Consumer Usage But Still Has Room for Growth

Media Time: 0:00 Ad Dollars: $$

16IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

Digital Trends:

Consumer Usage of Digital and its Influence on Ad Revenue

Top Sites Visited by Mobile and Computer

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

Google Sites

Facebook

Yahoo Sites

Microsoft Sites

Amazon Sites

ComcastNBCUniversal

AOL, Inc.

CBS Interactive

Apple Inc.

Turner Digital

One Year Trend of Unique Monthly Visitors to Top 10 Properties

19

Monthly Total Unique Visitors (000) Jun 2017 – Jun 2017

(sites, streams or apps via computer or mobile device)

Source: ComScore US Media Metrix Multi-Platform

Effective with January 2017 data, the comScore audience product suite underwent methodology and processing changes, resulting in break in trend. US Media Metrix Multi-Platform and Mobile Metrix data was

restated for April 2017 and May 2017 data months, in relation to duration data for Android smartphones.

Due to new forms of non-user initiated activity, iPhone reporting for [P] Twitter was inflated from April 2017 – Oct. 2016 and in turn impacted Total Mobile reporting. Weather Company, The” topline Unique Visitors

were overstated for February ’16-August ’16 and underestimated in Nov.-Feb.2017 Multi-platform data. Yahoo was under reported for Mobile and Multi-Platform data in April Comcast NBCUniversal September

2016 Minutes were overstated.

Roughly 150M – 250M visited the Top 10 sites monthly.

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

225,000

250,000

275,000

300,000

Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

Google Sites

Facebook

PANDORA

Yahoo Sites

Netflix Inc.

Spotify

Snapchat, Inc

Apple Inc.

Microsoft Sites

Amazon Sites

One Year Trend of Time Spent on Top 10 Properties

20

Monthly Total Minutes (MM) Jun 2017 – Jun 2017

(sites, streams or apps via computer or mobile device)

Source: ComScore US Media Metrix Multi-PlatformEffective with January 2016 data, the comScore audience product suite (Media Metrix MP, Media Metrix, Video Metrix, Mobile Metrix) underwent methodology and processing enhancements affecting all

markets and all audience products. Effective with January 2017 data, the comScore audience product suite underwent methodology and processing changes, resulting in break in trend. US Media Metrix

Multi-Platform and Mobile Metrix data was restated for April 2017 and May 2017 data months, in relation to duration data for Android smartphones.

Over the course of a year, consumers have started to spend more time on Google than on Facebook

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

253,530

241,433203,915

185,557183,814

180,032

155,300

154,532148,043

140,939 131,159127,272

110,486

110,291

109,915104,290

103,118

99,35595,298

93,079

93,010

91,25790,145 89,322

88,773

87,869

0

50,000

100,000

150,000

200,000

250,000

300,000Monthly Unique Visitors (000), June 2017

(to any site or app via computer or mobile device)

-2%

0%

-2% -10% -7% -1% -4%

1% 1%

-7% -9%

19%

-8% -4%

2% 1%

-18% -15%

79%

21%1%

-17% -13%

5% 11%

Top 25 Properties with the Most Visitors Accessed by Computer or Mobileby Unduplicated Monthly Unique Visitors

21

% Change in Monthly Unique Visitors (000) of Total Unduplicated Internet Audience

Jun. 2017 vs. Jun. 2016

Growthfrom a year ago

Decline

Total Unduplicated Internet Audience

comScore US Media Metrix Multi-Platform, Total Unduplicated Internet Audience, Monthly Unique Visitors (000)

357%

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

193,024185,049

176,627

139,890

120,078119,970

117,837111,728

108,783107,518102,673

221,364

209,922

156,465

128,458125,264

102,74175,219

73,84669,061

63,90153,268

Slight Differences Between Top 10 Most Visited Sites Accessed by Computer vs. Mobile Deviceby Unique Visitors

22

Top Sites

Accessed by Computerby Unique Visitors (000) Jun. 2017

Top Sites

Accessed by Mobileby Unique Visitors (000) Jun. 2017

comScore US Media Metrix (Desktop only), Mobile Metrix, Unique Monthly Visitors (000).

Jun. 2016 Rank

#1 #2 #4 #3 #5 #6 #7 #8 #9 #13

Jun. 2016 Rank

#1 #2 #4 #3 #5 #8 #9 #6 #7 #14

Computer Mobile

On August 18, 2017 US Media Metrix Multi-Platform and Mobile Metrix data was restated for April 2017 and May 2017 data months. The restatement is related to duration data for Android smartphones FAQs regarding this restatement can be accessed here.

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

156,127137,831

83,542

31,62922,74521,885

12,522 11,65210,97810,040

97,304

41,635

27,043

21,218

15,011

6,907 5,5773,013

2,703 2,654

More Apparent Differences in Top 10 Sites by Time Spent Online by Device

23

After Google and Facebook, most computer time online is spent on portals, retail and TV/video streaming sites

After Facebook and Google, most mobile time is spent streaming radio, video, accessing apps, chat and retail

Top Properties

Accessed by Computerby Minutes Spent (MM) on Site, Jun. 2017

Top Properties

Accessed by Mobileby Minutes Spent (MM) on Site/App, Jun. 2017

Source: comScore US Media Metrix (Desktop only), Mobile Metrix, Dec ’16

463,814 1,034,854

Jun. 2016 Rank

#1 #2 #3 #4 #5 #8 #6 #7 #14 N/A

Jun. 2016 Rank

#1 #2 #3 #5 #8 #4 #10 #6 #9 #11

Computer Mobile

comScore US Media Metrix (Desktop only), Mobile Metrix, Minutes Spent Online (MM)

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

MobileDigital Trends:Consumer Usage of Digital and its Influence on Ad Revenue

IAB Full Year 2016 and Q4 2016 Internet Advertising Revenue Report

$1.2 $3.0$5.3

$8.2

$15.5

$21.7

$3.4

$7.1

$12.4

FY'12 FY '13 FY '14 FY '15 FY'16 HY'17

1st Half Year 2nd Half Year

Mobile Advertising Revenue: Continued Double-Digit Growth

US Mobile Ad Revenue ($ Billions)Full Year, Half Year and % YoY Growth

25

$2.1$4.0

$20.7

$7.1

$12.5

Note: Full Year totals accurately reflect the sum of Half Year totals as rounded to two decimal places.

$36.6

$21.1

Growth

FY: 110%

1HY: 145%

Growth

FY: 66%

1HY: 54%

Growth

FY: 76%

1HY: 75%

Growth

FY: 77%

1HY: 89%

$ B

illio

ns

Growth

FY: ?

1HY: 40%

$?$

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad RevenueIAB Internet Ad Revenue Reports

191,034193,024

Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

Number of Mobile Unique Visitors is Steady

26

Source: comScore US Mobile Metrix, Total Unique Visitors on Smartphone or Tablet , Site or App. Effective with January 2017 data, the comScore audience product suite underwent methodology and processing changes, resulting in break in trend. US Media Metrix Multi-Platform and Mobile Metrix data was restated for April 2017 and May 2017

data months, in relation to duration data for Android smartphones.

Mobile Monthly Unique Visitors (000) (to any site or app via smartphone or tablet)

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

989,115 860,059

Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

One Year Trend of Time Spent Online on Mobile Devices

27

Source: comScore US Media Metrix Multi-Platform, Internet Time Spent on Smartphone and Tablet , Total Monthly Minutes (MM). Mobile includes browser and apps

Jun. 2016 – Jun. 2017

Total Mobile Minutes Spent Online (MM) Trend

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

Effective with January 2017 data, the comScore audience product suite underwent methodology and processing changes, resulting in break in trend. US Media Metrix Multi-Platform and Mobile Metrix data

was restated for April 2017 and May 2017 data months, in relation to duration data for Android smartphones.

Monthly Mobile Internet Usage Summary

28

193 MillionUsed a

Mobile Deviceto

Access the Internetin

June 2017

ComScore US Mobile Metrix Jun. 2017

860 Billion Minutes

Spent on

Mobile Devicesto

Access Sites or Appsin

June 2017

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

comScore US Media Metrix Multi-Platform, Jun’17, Total Monthly Unique Users Accessing Mobile App (MM)

More Consumers Use Smartphones and for Longer Than Use Tablets to Access the Internet

29

Total Mobile Minutes on Browser vs. In App

87%

13%

Total Smartphone Minutes

Total Tablet Minutes

June 2017

comScore US Mobile Metrix, Jun’17, Total Minutes (000) Browsing, Applications

Total Mobile Minutes Online

174 Million Accessed the Internet via

Smartphonein June 2017

of Mobile Time Online is on

Smartphone

Tablet 96 Million Accessed the Internet via

Tabletin June 2017

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

Mobile Apps vs. Mobile WebDigital Trends:Consumer Usage of Digital and its Influence on Ad Revenue

comScore US Media Metrix Multi-Platform, Total Monthly Unique Users Accessing Mobile App (MM)

While Most Consumers Use Both Mobile Apps and Mobile Web, More Time is Spent in App

31

Total Mobile Minutes on Browser vs. In App

87%

13%

Total App Minutes Total Browser Minutes

Jun. 2017

comScore US Mobile Metrix, Total Minutes (000) Browsing, Applications

Total Mobile Minutes Online

181 Million Users

Accessed Mobile Apps

In Jun. 2017

169 Million Users

Accessed Mobile Web

In Jun. 2017

of Mobile Time Online is on

Mobile Apps

MobileWeb

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

Nearly Two-Thirds of US Adults Download Mobile Apps

32

64%36%

Download Mobile Apps

Yes No

Download

Mobile Apps

Don’t Download

Mobile Apps

Do you download apps to your mobile device?

IAB Analysis of Prosper Media Behavior & Influence DataJan. 2017. n=16,644 US Adults 18+

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

Less Than Half of US Adults Pay for Mobile Apps

33

43%57%

Regularly/Occasionally Never

Pay for

Mobile Apps

Never Pay for

Mobile Apps

How often do you pay for apps you use on your Smartphone or Tablet?

IAB Analysis of Prosper Media Behavior & Influence DataJan. 2017. n=16,644 US Adults 18+

Pay for Mobile Apps

Providing opportunities for mobile advertising in ad-supported free apps

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

180,748

173,314161,670

102,617

89,786

81,79274,861

70,747 68,811

66,35347,897

43,778

39,223

34,280

32,140

31,457

25,932

25,92425,606

24,688

23,82222,993

22,710 22,22720,81819,934

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Monthly Unique Visitors (000) to Mobile Apps, June 2017

-2%

9% 1%

-4%

73%

6%

-2%-14%

39%

-19%-7%

18%

-9% -3%-19%

11%17%

-11%-9%

52%

-30%

15%

-30%

Top 25 Most Popular Mobile Appsby Unduplicated Monthly Unique Visitors

34

% Change in Monthly Unique Visitors (000) of Total Unduplicated Internet Audience

Jun. 2017 vs. Jun. 2016

Growthfrom a year ago

Decline

comScore US Media Metrix Multi-Platform. Total Unduplicated Internet Audience, Monthly Unique Visitors (000)

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

1317%292%

139%

168,977

160,158147,244

118,461

106,634

105,021100,952

98,939

90,116

80,91579,904

79,696

77,214

74,976

72,141

71,705

61,760

60,43360,369

59,880

58,119

56,34256,267 53,198

52,439

52,171

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000Monthly Unique Visitors (000) to Mobile Sites, June 2017

1% 0

-3% -5%

6%

-4%

2%

-20%

13% 4%

-19%-1%

-21% -15%

23% 21%38%

-4%

13%

-29%

-2% -1%-13%

0% -1%

Top 25 Most Visited Mobile Sitesby Unduplicated Monthly Unique Visitors

35

% Change in Monthly Unique Visitors (000) to Top 25 Mobile Sites, Jun. 2017 vs. Jun. 2016

Growthfrom a year ago

Decline

comScore US Media Metrix Multi-Platform, Total Unduplicated Internet Audience, Monthly Unique Visitors (000)

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

407%

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

Facebook

Google Sites

PANDORA

Spotify

Slidejoy

Snapchat

Apple Inc.

SOUNDCLOUD

Netflix Inc.

iHeartRadio Network

One Year Trend of Time Spent on Top 10 Mobile Apps

36

Monthly Total Minutes (MM) per Mobile App, Jun 2017 – Jun 2017

Source: ComScore US Media Metrix Multi-Platform

Effective with January 2016 data, the comScore audience product suite (Media Metrix MP, Media Metrix, Video Metrix, Mobile Metrix) underwent methodology and processing enhancements affecting all markets and all audience

products. US Media Metrix Multi-Platform and Mobile Metrix data was restated for April 2017 and May 2017 data months related to duration data for Android smartphones. Mobile Pageviews were under-reported for Money (Time Inc)

for June and July, Yahoo was underreported in April, Tinder overstated in Mar, April, Spotify reported incorrectly in Oct., Nov., Dec. 2016, NBCUniv. Was overstated in Sept.

While Facebook is still the #1 app in terms of time spent online, consumers have started to spend less time on it and more time on Google apps

4 out of the top 10 mobile apps are exclusively music streaming apps

Pandora’s app is almost as popular as Google’s apps

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

Google Sites

Facebook

Yahoo Sites

Amazon Sites

Microsoft Sites

Turner Digital

ESPN

Zillow Group

craigslist, inc.

AOL, Inc.

One Year Trend of Time Spent on Top 10 Mobile Sites

37

Monthly Total Minutes (MM) per Mobile App, Jun 2017 – Jun 2017

Source: ComScore US Media Metrix Multi-Platform

Effective with January 2016 data, the comScore audience product suite (Media Metrix MP, Media Metrix, Video Metrix, Mobile Metrix) underwent methodology and processing enhancements affecting all markets and all audience

products. US Media Metrix Multi-Platform and Mobile Metrix data was restated for April 2017 and May 2017 data months related to duration data for Android smartphones. Mobile Pageviews were under-reported for Money (Time Inc)

for June and July, Yahoo was underreported in April, Tinder overstated in Mar, April, Spotify reported incorrectly in Oct., Nov., Dec. 2016, NBCUniv. Was overstated in Sept.

Over the course of a year, consumers have started to spend more time on Google sites than on Facebook’s site

Consumers spent the most mobile web time on Portals, TV sites, eCommerce and Real Estate sites

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

Digital VideoDigital Trends:Consumer Usage of Digital and its Influence on Ad Revenue

IAB Half Year 2017 and Q2 2017 Internet Advertising Revenue Report

Total Video Ad Revenue for First Half of 2017 Has Doubled Since HY’15

$2.6 $3.8

$5.2

$3.3

$5.3

$?

FY '15 FY '16 HY '17

1st Half Year 2nd Half Year

$9.1

$6.4$5.9

$?

US Total Video (Mobile + Desktop) Ad Revenue ($ Billions)Full Year, Half Year and % YoY Growth

39

Note: Full Year totals accurately reflect the sum of Half Year totals as rounded to two decimal places.

Growth

FY: 53%

1HY: 51%

Growth

1HY: 36%

$ B

illio

ns

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

221 Million Users Streamed 46 Billion Videos for 170 Billion Minutes in June

40

In June, 221 million Americans streamed digital video, or 68% of the US population of 323 million*

23 billion video ads were streamed in June 2017

221 Million

Users Streamed Digital Video

46 Billion

Videos

Streamed

170 Billion Minutes

Spent

Streaming Video

23 Billion

Video Ads

Streamed

ComScore VideoMetrix, Total Audience, Home and Work. Desktop only

*US Census Bureau estimDecates US population to be 323M as of most recent figures on July 2016.

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

142,607

70,336

46,35045,512

41,526 40,069 38,421 36,19735,579 34,966

30,018

27,232

25,399

23,909

23,773

22,763

22,58521,748

21,339

20,46920,292

19,763 18,698

17,68814,953

Monthly Unique Visitors (000) to Video Properties, June 2017

-5% -12% -16% -23%

10%

-5% -1%

4%

-26%

0% 4%

-13%

0%

-4%

67%

-10%-30%

2%0%

0% 8%23%

65%

-40% -33%

Top 25 Most Visited Video Propertiesby Monthly Unique Visitors

41

% Change in Monthly Unique Visitors (000) to Top 25 Video Properties, Jun. 2017 vs. Jun. 2016

Growthfrom a year ago

Decline

comScore US Video Metrix. Monthly Unique Visitors (000). Desktop only.

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

221,364

145%

1,6591,220

820702

628511 476 437 395

343 322 320 316 299 295 294 258209 182 181 178 161 153

Monthly Videos Streamed (MM), June 2017

3%

-25%

30%

-40%

18%1%

-12%

-77%

25%7%

18%

-16% -12%

0% 1%

-42%

-2%

63%

0%

-21%

-69%

-33%-20%

Top 25 Most Streamed Video Propertiesby Monthly Videos Streamed

42

% Change in Monthly Unique Visitors to Top 25 Video Properties, Jun. 2017 vs. Jun. 2016

Growthfrom a year ago

Decline

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

2280%

comScore US Video Metrix. Monthly Videos Streamed (000). Desktop only.

9,191

13,52546,185

180%

21,061

20,136

3,0232,689

2,2692,124

1,9731,970

1,894 1,8891,814 1,7191,458 1,041

897769 746 713 676 661 627 625 608 497

Monthly Minutes Spent Streaming (MM), June 2017

-11% -13% -10%

86%

11%

87%34%

-67%-86%

-1% -17%

0%

32%13%

-13%

-77%

-55%

75%

32%

79%

0%

-74% -77%-66%

Top 25 Longest Visited Video Propertiesby Monthly Minutes Spent Streaming

43

% Change in Monthly Minutes Spent Streaming to Top 25 Video Properties, Jun. 2017 vs. Jun. 2016

Growthfrom a year ago

Decline

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

170,349

comScore US Video Metrix. Monthly Videos Streamed (000). Desktop only.

63,894

6336%110%

Digital AudioDigital Trends:Consumer Usage of Digital and its Influence on Ad Revenue

IAB Half Year 2017 and Q2 2017 Internet Advertising Revenue Report

Total Audio Ad Revenue Has Grown

Total Audio Ad Revenue (Mobile + Desktop) ($ Millions)

Full Year, Half Year and % YoY Growth

$425 $603

$675

$?

FY 2016 HY 2017

HY'16 FY'17

42%Growth

from

HY’16

$1.1B

$?

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

Ent. - Music

PANDORA

Spotify

SOUNDCLOUD

VEVO

TuneIn

Warner Music

Audible, Inc.

SPINRILLA

Myspace

MSN Music

One Year Trend of Time Spent on Top 10 Music Entertainment Sites

46

Monthly Total Minutes (MM) on Music Entertainment Properties, Jun 2017 – Jun 2017

Source: ComScore US Media Metrix Multi-Platform

Effective with January 2016 data, the comScore audience product suite (Media Metrix MP, Media Metrix, Video Metrix, Mobile Metrix) underwent methodology and processing enhancements affecting all markets and all audience

products. US Media Metrix Multi-Platform and Mobile Metrix data was restated for April 2017 and May 2017 data months related to duration data for Android smartphones. Mobile Pageviews were under-reported for Money (Time Inc)

for June and July, Yahoo was underreported in April, Tinder overstated in Mar, April, Spotify reported incorrectly in Oct., Nov., Dec. 2016, NBCUniv. Was overstated in Sept.

Pandora is by far the leader in time spent on music entertainment sites or apps

#2 and #3, Spotify and Soundcloud have grown over the year

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

913M

VisitedMusic

EntertainmentPropertiesin June ‘17

Social MediaDigital Trends:Consumer Usageof Digital and its Influence on Ad Revenue

IAB Full Year 2016 and Q4 2016 Internet Advertising Revenue Report

Total Social Media Revenue Shows Steady Double-Digit Growth

$4.5

$7.0

$10.9

$16.3

FY '13 FY '14 FY '15 FY '16 HY '17

1st Half Year 2nd Half Year

$4.4

$6.4

$7.0

$9.3

$9.5

$?

$?

US Social Media Ad Revenue ($ Billions)

(Mobile + Desktop) Across Formats and Devices

Full Year, Half Year and % YoY Growth

48

$2.6

$2.9

$4.1

$1.9

Note: Full Year totals accurately reflect the sum of Half Year totals as rounded to two decimal places.

Growth

FY: 57%

1HY: 58%

Growth

FY: 55%

1HY: 51%

Growth

1HY: 37% Growth

FY: 50%

1HY: 57%

$ B

illio

ns

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

162,851

22,762

5,8805,785

3,291 2,813 2,4221,010 497 343

216,225

201,987

110,291

103,11895,298

86,167

46,169

42,38235,409

15,1768,575

Top Social Media Properties

49

Top Social Media Propertiesby Unique Visitors (000) Jun. 2017

Top Social Media Propertiesby Time Spent (MM) Jun. 2017

comScore US Media Metrix (Desktop only), Mobile Metrix, Unique Monthly Visitors (000)., Monthly Minutes Spent on Property

Unique Visitors Minutes

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

On August 18, 2017 US Media Metrix Multi-Platform and Mobile Metrix data was restated for April 2017 and May 2017 data months. The restatement is related to duration data for Android smartphones FAQs regarding this restatement can be accessed here.

213,135

18%

17%

14% 14%

11%

9%9% 8%

6%

Electronics Apparel/Clothing Dining Out Grocery HomeImprovement

Car/Truck Medicines Telecom Services FinancialSvcs/Insur.

Social Media Influences Purchase Decisions

50

Electronics, Clothing, Dining and CPG purchases are most influenced by social media

% Who Say Their Purchases are Influenced by Social Media(in the Following Verticals)

Prosper Insights, Media Behavior and Insights data, Jan. 2017. n=16,644 US Adults 18+

(Food/

Cleaning/

Beauty)

IAB Digital Trends: Consumer Usage of Digital and its Influence on Ad Revenue

Digital Trends:Consumer Usage of Digital and its Influence on Ad Revenue

51

Questions?Kristina Sruoginis

[email protected]

Visit IAB.com/ResearchHub for more IAB Research

Half Year 2017 Update