JUNE 08, 2015

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U.S. Internet Advertising Revenues Totaled Nearly $50 Billion in 2014

Revenue from internet advertising in the United States totaled $49.5 billion in 2014, which was a 16% gain over 2013 ($42.8 billion). A new report released by the Interactive Advertising Bureau (IAB) in partnership with PwC breaks down the composition of the spend. Although its piece of the pie continues to decrease at the expense of mobile, Search still claims the largest share of the digital ad spend -- 38% of all spending (but down from 43% last year). Mobile now represents 25% of the total ad spend, up from 17% last year. Mobile ad revenues totaled $12.5 billion in 2014, up 76% over 2013. Retailers continue to be responsible for the heaviest online ad spend -- 21% of all internet ad spending. Financial services (13%) and automotive (12%) round out the top three. As has been the historical trend, advertisers spent more in the second half of the year ($26.4 billion) than during first half ($23.1 billion). 

So what?

In just the past two years, the amount advertisers have spent to promote on the internet has grown by 35%, and the mobile spend has nearly quadrupled during the same period. Mobile is driving most of the recent growth in internet advertising revenue, and that upward trend shows no signs of slowing.

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Social Media – the Local TV for Millennials

When it comes to getting news about politics and government, social media is to Millennials as television is to Baby Boomers. According to a new Pew Research Center analysis which considers political news consumption across generations, 61% of Millennials, 51% of Gen Xers and 39% of Boomers report getting political news on Facebook each week. Conversely, Millennials have a relatively low reliance on local TV for political news with just 37% watching local news on TV each week versus 46% of Gen Xers and 60% of Boomers. This ongoing analysis also addresses awareness, use and trust of 36 news sources ranging from USA Today to Rush Limbaugh to The New Yorker. Regarding awareness, Millennials are less aware (compared to Gen Xers and Boomers) of half of the 36 news sources measured, but more aware of BuzzFeed and Google News. Millennials tend to trust The Daily Show, The Colbert Report and Al Jazeera America – these sources are more distrusted by Gen Xers and Boomers. The New Yorker, Politico and The Huffington Post are also trusted by Millennials; the trust held by Millennials in each each of these outlets is consistent with trust among Gen Xers and Boomers.

So what?

As we enter a new election cycle, voters will be using a variety of sources to gather information and form their opinions. This research indicates that Millennials are in fact using their Facebook News Feed for hard news. That being said, publishers set to cover the 2016 election might be able to engage new Millennial audiences and create deeper engagement with existing audiences by way of aggregating political news content on Facebook. 

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Quick Takes
Apple's App Store Adds 1,000 New Apps Each Day

Source: Pocketgamer.biz,Statista
Major U.S. Retailers' Digital Audiences Heavily Comprised of Mobile-Only Traffic

Source: comScore via Internet Retailer
Condé Nast
Feedback, questions, ideas for future issues? Please contact:

Phil Paparella
Condé Nast Research & Insights | Associate Director
1166 6th Avenue, 14th fl. | NY, NY 10036 | office 212.790.6044 | philip_paparella@condenast.com

Tamar Rimmon | Senior Manager, Digital Analytics
Robyn Hightower | Manager, Research & Insights