IAB: Search Ads Generate $16.3 Billion In First-Half 2016

• by Laurie Sullivan@lauriesullivan, Yesterday, 6:49 PM

Mobile revenue rose 89% from the $8.2 billion reported during the first half of 2015 to $15.5 billion during the first half in 2016 of which mobile search contributed $7.4 billion.

Desktop and mobile search ad revenue represented 50% of the total, up 19% year-over-year. Mobile and desktop search revenue contributed $16.3 billion in the first half of the year for 2016, up 19% from the first half of the year in 2015 at $13.7 billion, according to the Internet Advertising Revenue Report published by the Interactive Advertising Bureau (IAB) and conducted by PricewaterhouseCoopers.

Aside from search, mobile revenue consisted of mobile banner at $7.6 billion, and mobile other at $455 million during the first half of the year. Inclusive of mobile display related revenue, the display format totaled revenue of $13.9 billion.

Desktop search accounted for $4.5 billion in revenue, about 27% of the total in the second-quarter 2016, compared with $5.2 billion in second-quarter 2015.

For the first half of the year, desktop search accounted for $8.9 billion, down 12% from $10.1 billion in the first half of 2015.

Overall, digital ad revenue in the U.S. reached $32.7 billion for the first half of 2016. Mobile ad revenue rose 89% year-over-year to $15.5 billion in the first half of 2016. The media represented 47% of all Internet ad revenue, from search to display -- up from 30% one year ago. 

Desktop lead-generation revenue accounted for 3% of revenue during the second quarter of 2016 -- or $482 million -- consistent with the $461 million reported in the second quarter of 2015.

Desktop display-related advertising accounted for $3.2 billion, or 19% of total revenue, down 8% from $3.5 billion.