Thursday, December 21, 2017

Despite Wishful Thinking…Digital Revenue Continues To Explode + Tax Plan Good for Advertisers



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So much for those who think advertisers are moving away from digital due to fraud and poor results. The Interactive Advertising Bureau announced on Wednesday that digital advertising revenues in the United States for the first half of 2017 surged to an all-time high of $40.1 billion. That’s a 23 percent increase over the first six months of 2016 ($32.7 billion). Ten years ago, the first half total was under $10 billion. So where did all that money go in 2017? Let’s dig in…
Mobile captured 54 percent of total digital ad revenues—maintaining its status as the Web’s leading ad format. Advertisers spent $21.7 billion on mobile during the first six months of 2017, a 40 percent increase from $15.5 billion in half-year 2016 and far surpassing the $8.2 billion reported just two years ago in HY 2015.
Digital audio advertising, including mobile and desktop, generated $603 million in HY 2017, a 42% increase over HY 2016’s revenue of $425 million.
NOTE: BIA projects that radio will take in about $886 million in digital revenue in all of 2017.
Social Media advertising, including mobile and desktop, brought in revenues of $ $9.5 billion in HY 2017, a 37% increase over the $7 billion in 2016.
The IAB says that of the roughly 9 million small and medium-sized businesses in the U.S., 75 percent or more have spent money on advertising. Of these, 80 percent have used self-service platforms and 15 percent have used programmatic advertising.

Tax Plan Good for Advertisers
Advertisers will continue to deduct advertising expenses from their taxes as a result of tax reform legislation passed by Congress this week. Both broadcasters and advertisers were worried that expense would be dropped and were fighting to keep it alive. NAB CEO Gordon Smith said, “TV and radio stations salute leaders of Congress for recognizing the importance of advertising as a principal driver of commerce by preserving the full and immediate deductibility of advertising expenses. Advertising is an undeniable stimulus for robust growth that has helped America lead the world in the creation of high-paying jobs.”

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