Online advertising 2016 rose 22 percent to $72.5 billion, surpassed television

Tinuku ~ Television is no longer a number one for marketers. The Internet Advertising Revenue Report released digital ads in 2016 reached $72.5 billion, an increase of 22 percent over the previous year. Google and Facebook dominate the revenue share of total desktop-based and smartphone-based advertising media.

Tinuku Online advertising 2016 rose 22 percent to $72.5 billion, surpassed television

Advertisers spend up to $72.5 billion on digital advertising throughout 2016 or rise by 22 percent compared to 2015. The Internet Advertising Revenue Report on Wednesday, April 26, 2017 releases the technology giant Google and Facebook continues to record the largest revenue from digital advertising.

Recent reports underscore the migration of advertising consumers from traditional media such as television and radio to desktop and smartphones platforms for years to come. This change challenges digital companies competing for larger portions of advertising.

Online advertisers are increasingly in control of the target audience for the effectiveness of sales, which the television media does not have. The increase in digital ad spending is dominated by Google and Facebook, which contribute 99 percent to the growth of digital industry.

Packaged goods companies reduce advertising on television and even launch some new products without campaigns on national television. Online video reached a record $9.1 billion, up 53 percent year over year. Video revenue on mobile platforms rocketed 145 percent to $4.2 billion.

Mobile advertising accounts for about 51 percent or about $36.6 billion of all digital ad revenue in 2016. Of these, 47 percent or $17.2 billion comes from mobile searches. Overall desktop searches dropped for the first time in 2016 to $17.8 billion, down 13 from year to year.

The eMarketer analysts say Google is ready to capture nearly 78 percent of the global search ads market by 2017 or about $28.5 billion in revenue. Second banner ads in mobile ad spend with 38 percent, then video for 11 percent. Social media advertising revenue reached $16.3 billion, up nearly 49% from a year earlier.

In 2016 also marked the introduction of digital audio as a self-contained category that has a vertically increased revenue of over $1.1 billion. Young people do not listen to traditional radio, but consume audio through a streaming service and may also listen to podcasts.

The largest advertising spenders of 2016 are retail (21%), financial services (13%), car (12%), telecommunications (9%) and travel (9%). Travel advertising spending increased 8% and video was the only growth segment on desktop devices with 16% to $4.9 billion.