Monday, September 3, 2012

I Love Christmas - IAB / PWC 2nd Quarter Expenditure Report

It always feels like Christmas when the latest IAB PWC expenditure report comes out.  A Christmas that rolls around every three months. Not least of all as the presents, or rather the spend from market, just seems to increase each quarter.

It’s no different this Christmas, er, Quarter I mean.  Straight to some key numbers ay;

·         Q2 2012 $91.42m
o   7.1% increase YoY (Q2 2011 was at $84.15m)
·         Total spend by platform breaks down as
o   Display 32%  
o   Search and Directories 37%
o   Classifieds 31%
·         $3.64m spent on video
o   42% YoY increase
·         650k spent on mobile
o   156% YoY increase

So for the first time we’ve achieved a quarter that is north of $90m.  Which puts the industry on track for its first $100m quarter in six months time… just in time for Christmas proper.  PHDiQ are forecasting that digital will then go on to break through the $400m mark in 2013, lurching onwards and upwards to $489m by 2016, at the same time surpassing newspaper revenue.  And I think our trading director is being conservative – but I suppose I might be a bit biased.

While that news about newspapers isn’t going to surprise anyone, the performance of video is perhaps raising some eyebrows, contributing 12% of the total display revenue and helping push display closer to Search and Directories.  I’m predicting that with this growth in video will help push Display to be on par with Search & Directories by 2015.

Mobile, while barely out of its nappies at a modest 2% of total Display revenue in this report, will be another driving force in the next three to four years.  It will increase revenue exponentially as we see rapid update of smart phone penetration and cheaper data charges allowing rich media display, including video.  Another number from our trading director - $15m-$18m spend on mobile by 2016.  As a footnote, while penetration of smart phones is currently recorded at 40%, I think the more interesting number from a recent Google survey is that 20% of those with smart phones have only had them for between 0 – 3 months, suggesting we’re well on track to achieve considerable growth.

Roll on the next IAB PWC Christmas, set for release Nov 2012.

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