Social Video Networks Are Drinking TV’s Ad Dollar Milkshake

By Kendra Chamberlain

Mobile advertising continues its upward trajectory in an increasingly mobile-first world. The Interactive Advertising Bureau (IAB) estimates digital ad revenues reached $32.7 billion in the first six months on 2016, representing a 19% increase over the first half of 2015. Mobile drove most of that growth, accounting for 47% of digital ad spend during the period. Mobile advertising has grown 89% over the past year to reach $15.5 billion.

And what’s driving mobile advertising? Video, of course. IAB said mobile video ad spending grew 178% during the period, and search – the second biggest driver for mobile ads – grew 105%.

While advertisers are flocking to mobile video, TV ad spending has slowed. In the first of 2016, broadcast and pay TV advertising revenue reached $40 billion. That’s still about $7.3 billion more than spent in digital, but the margin is narrowing ominously. In 2015, TV ad spend was $12 billion more than digital; in 2014, the gap was closer to $15 billion. In fact, 2017 is predicted to be the year digital ad spending will surpass TV in terms of total dollars.

Facebook and Google are the two giants duking it out in this space, which experienced the fastest growth this year since 2011. IAB said Google and Facebook accounted for nearly all the growth in online advertising during the first half of 2016…

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