Key Drivers for Browser Revenue Growth

Goals

To determine the key drivers for browser revenue growth in the U.S. and EU. Specifically, to determine what trends are causing these regions to outperform others in ad revenue.

Early Findings

  • A recent report commissioned by the Interactive Advertising Bureau (IAB) revealed that U.S. internet advertising revenues grew to $107.5 billion in 2018, topping $100 billion for the first time in history.
  • This was a 21.8% increase over 2017 revenue, which came in at $88.3 billion. Meanwhile, TV and radio advertising grew by roughly only 1% and print advertising saw a decline for the same year.
  • This massive growth in U.S. browser revenue is the result of advertisers seeking the large audiences targeted by tech powerhouses such as Facebook and Google.
  • With social media growth slowing, companies are experimenting with new ways to bring in ad revenue, such as shopping ads on Instagram.
  • The IAB report also notes that 75% of internet ad revenues in the final quarter of 2018 were split between the top 10 ad-selling companies.
  • According to eMarketer, as of February 2018, Google held the largest share of U.S. digital ad revenue at 37.2%, while Facebook was predicted to hold 22.1% by 2019 year-end.
  • eMarketer also predicted that Amazon, Google and Facebook would account for roughly 70% of U.S. digital spending by 2021.
  • Additionally, IAB identified ad revenue from mobile and digital video as leading the U.S. market growth, with mobile up by 40% in 2018 and video up to $16.3 billion (an increase from $11.9 billion in 2017).
  • The emergence of a direct-to-consumer (DTC) economy and digital ad revenue from e-commerce were identified as key drivers of recent browser revenue growth in the U.S. According to IAB, companies are now able to use consumer data—such as browsing and purchasing history—to allow advertisers to better reach target audiences.
  • Increasingly advanced search capabilities within e-commerce platforms and shoppable ads were listed as key elements in revenue growth as well.
  • IAB also identified "brand storytelling" across social media as a key driver in U.S. digital ad venue growth.
  • According to IAB's analysis, programmic ad revenues—another top growth driver—made up about 80% of all digital display advertising as of 2018.
  • A 2019 Global Digital Ad Trends analysis from PubMatic revealed that digital ad spend continues to grow in the U.S., accounting for more than half of the total media ad spend in 2019 and projected to increase to roughly two-thirds by 2022.
  • PubMatic also identified the top five digital ad spend markets worldwide, which included the U.S., China, the UK, Japan and Germany.
  • In addition to this public search, we scanned our proprietary research database of over 1 million sources and were unable to find any specific research reports that address your goals.

Proposed next steps:

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