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Internet advertizing (market of the USA)

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Main article: Economy of the USA

2019: Share of pro-grammars advertizing of 82%

Share of pro-grammars advertizing in the market of Digital Signage in the USA in 2017-2019 with the forecast for 2020-2021

2018: Top-20 Internet giant by the Internet audience size

The Internet companies by the audience size

2017: Online advertizing volume in the USA grew by 21% and overtook income from TV

Online advertizing volume in the USA reached a record high of $88 billion, according to the report of IAB and PwC. It is 21% higher in comparison with $72.5 billion last year. For the first time income from Digital Signage overtook receipts from television.

More than a half (57%) of all online advertizing, or $49.9 billion was the share of a mobile segment that is 36% more, than a year ago. Advertizing volume in a video segment was record $11.9 billion in 2017, growth was 33% in comparison with $8.9 billion in 2016. At the same time mobile video advertizing revenues were 54% of all income in this segment, or $6.2 billion.

2015

Google and Facebook occupy 52% of the market of mobile advertizing of the USA

eMarketer estimated the volume of all American market of mobile advertizing in 2015 at $30.5 billion[1].

At the end of 2015 Google and Facebook occupied 52.3% of all market of mobile advertizing of the USA.

  • The share of Google made 32.9%, or $10.02 billion,
  • share of Facebook – 19.4%, or $5.9 billion.
  • On the third place of Twitter from shares of 3.8%,
  • on the fourth – Yahoo! from shares of 2.9%,
  • on the fifth – Apple (iAd) from shares of 2.6%.

In 2016 the media advertizing on budgets will outstrip context

In January, 2016 analysts of EMarketer predict that in 2016 the media advertizing (display advertizing) will outstrip on volumes contextual advertizing (search advertizing) in the USA.

Costs for media advertizing will make $32.17 billion, on context – $29.24 billion. Further the gap, by estimates of EMarketer, will only grow in costs.

The cumulative share of media advertizing (including video, sponsor's advertizing, banners and other advertizing formats and also a so-called rich media segment – banners / advertizing blocks with interactive contents), as expected, in 2016 will reach 47.9% of all market of Internet advertizing in the USA.

Expenses on banners and other formats will grow from $11.57 billion in 2015 to $13.39 billion in 2016. Expenses on video segment in online advertizing will raise from $7.46 billion in 2015 to $9.59 billion in 2016.

The main share of expenses on video advertizing on the Internet is necessary on desktop advertizing (desktop, desktop computers) –[2] 57.5%[2]

At the same time the main share of expenses on banners, advertisements of rich media, the sponsored publications and other media formats will be concentrated on mobile devices – 77.5%.

2014: The market of Internet advertizing in the USA for 2014 grew to $49.5 billion

Revenue in the market of Internet advertizing in the USA at the end of 2014 increased to record $49.5 billion that is 16% more than last year's indicators ($42.8 billion), results of the research conducted by Interactive Advertising Bureau (IAB) demonstrate.


According to a research, revenue in a segment of Digital Signage in the States in the fourth quarter reached 2014 $14.2 billion that is 17% more, than for the same period of 2013.

Media Internet advertizing grew in a year by 5%, from $12.8 billion to $13.5 billion. 27% of the market – the biggest share were the share of it.

Digital video advertizing as a type of media advertizing earned $3.3 billion for 2014, is 17% more, than the previous year ($2.8 billion). Total revenue from advertizing on social networks increased in a year by 57%, from $4.5 billion to $7 billion.

The market of mobile advertizing in the USA reached in 2014 $12.5 billion that is 76% more, than for 2013 (then this segment made $7.1 billion). Thus, mobile advertizing became the industry second in terms of the scope of in the American market of Internet advertizing and occupied in it 25% whereas in 2013 17% were the share of it.

Most of all means from what is spent in the USA for Internet advertizing still invest in retail advertizing – 21% of investments fall to its share. It is followed by financial services (13%) and automobile advertizing (12%).

2013

Research of Adobe

Founders of Adblock Plus, browser expansion for blocking of importunate Internet advertizing, published in December, 2013 the forecast of development of the advertizing industry for 2014 Adblock Plus predicts three trends in new year:

  • Growth of intolerance to persuasive advertizing. Users will strike back to online advertizing that follows from the annual growth of number of loadings of disablers. 2014 will become year when people try to return themselves the Internet.
  • Answer of the market. It is time for advertizing industry to draw conclusions from the simultaneous growth of investments in online advertizing and numbers of downloads of disablers. For the benefit of the industry to make a compromise with the "protesting" users, having made advertizing less persuasive.
  • Growth of awareness of users. In 2014 users will be able to gain an impression about contents of "black boxes" of online advertizing. For many years Internet surfers did not know how advertisers experiment with new formats of advertizing, invisibly keeping track of their activity. However such solutions as a plug-in Lightbeam for Firefox and disablers gave to users the chance to return control over network.

In the USA Internet advertizing volume for the first time exceeded TV commercial volume

In the USA the market of Internet advertizing at the end of 2013 made $42.8 billion in volume, having reached an absolute record (it is 17% higher than characteristics of 2012: then the amount of this market was $36.6 billion) — it is reported in the new report of consulting company PricewaterhouseCoopers made for Interactive Advertising Bureau. The gain in a segment of Internet advertizing made 17%, and mobile advertizing showed three-digit in 110%.

Time which is spent by people on different types of media and share of advertizing costs for different types of media in the USA in 2013[3]

It is noted that for the first time budgets of the American advertisers online exceeded expenses of advertisers on TV (in 2013 revenue from TV advertizing made $40.2 billion). The president of IAB Randall Rotenberg believes that digital devices proved the efficiency in attraction and a scope of audience long ago.

Video advertizing on the Internet increased by 19%, budgets grew from $2.3 to $2.8 billion. And the segment of media advertizing added 7% ($12.8 billion), search — 9% ($18.4 billion). For a year of investment into mobile advertizing grew from $3.4 to $7.1 billion, and its share doubled practically — from 9% to 17%.

If to speak about quarter income, then according to the results of the 4th quarter 2013 the amount of the South American market of Digital Signage grew by 17% in comparison with the same period of 2012 — from $10.3 billion to $12.1 billion.

Also during the research it was succeeded to establish that the biggest investments into Internet advertizing are provided by representatives of retail. The amount of their investments in Digital Signage in 2013 was about 21% of the total number of investments.

2011: Growth of 22% to $31.7 billion

According to data of the joint report of IAB and PricewaterhouseCoopers company, the size of the market of Internet advertizing in the USA in 2011 grew by 22% in comparison with 2010 and reached record 31.7 billion dollars.

2010: Internet mass-media bypassed printing on advertizing revenues

Internet mass-media for the first time overtook printing editions by the size of audience and advertizing revenues in the USA in 2010. It is said in the next annual report of State of the News Media published by Pew Research Center company.

According to data of a research, 46% of the polled Americans read news in internet mass-media at least three times a week whereas materials in printing newspapers and on their websites are regularly browsed only by 40% of respondents.

Advertizing revenues of the print media in 2010 dropped by 46% in comparison with indicators four years before and for 6.4% in comparison with 2009 - to $22.8 billion. Revenues of the online press at the same time grew in a year by 13.9% (or $3 billion) to $25.8 billion, authors of the report report, referring to data of EMarketer research company.

"We see that transition of mass media to the Internet accelerates. It is promoted by rapid growth of popularity of tablet computers and increase in distribution of smartphones", - Tom Rosenstiel, chapter of the Project for Excellence in Journalism project noted at Pew Research Center.

Analysts note, as for internet mass-media not everything is smooth, despite steady growth of advertizing revenues. The considerable share of finance in this area settles in pockets of searchers, without reaching creators of content. The complexity for news online editions consists that the big share of advertizing expenses, 48%, is the share of search declarations whereas editions get only small part of them. Also significantly the news aggregators earning from providing someone else's content to users reduce possible income of online editions.

Besides, experts say that large online media began to use the considerable efforts for search of new sources of income in Network whereas earlier they tried to increase volumes of the made content first of all.

One more important factor of development of the general authors of the report call media of the market in the USA the mobile Internet. Nearly a half of the polled Americans (47%) said that they periodically read local news using the mobile devices. Most often, thus get access to local news or information on the next institutions, such as restaurants, shops, etc.

2001-2009

Dynamics of the market of Internet advertizing in the USA

Expenses on Internet advertizing in the first quarter made 2009 5.5 bln. dollars that is 5% lower, than in the fourth quarter 2008 (6.1 bln. dollars), reported in the research Interactive Advertising Bureau and PricewaterhouseCoopers.

Traditional media on the Internet

2009

The Internet (advertizing and subscription) in 2009 brought to the American publishers $902 million (assessment of PwC)) that makes only 6% of their total income. As analysts of Morgan Stanley specify, publishers who implement several years accurate Internet strategy could improve financial performance against the background of the general fall of the print advertizing in crisis and, moreover, gain noticeable income in network not only from advertisers, but also from loyal readers who are ready to pay for access to content and additional services.

As it appears from reports of the Pearson group (owns the Financial Times newspaper and the Economist magazine) and New York Times Company (NYT, issues the newspaper of the same name), income of these editions in the Internet in recent years considerably grew. If the general revenue growth at NYT in the II quarter 2010 in comparison with the same period of 2009 was 1.2% (to $586 million), then Internet advertizing revenues grew by 20.5% at once (to $94.3 million). Thus in network the newspaper earns 16% of revenue, and it is the main source of growth of its operating profit which increased in the II quarter by 40%.

FT Group thanks to "digital services" (first of all on a paid subscription to the websites) received 36% of revenue in the first half of 2010. The most part of the materials Financial Times and Economist in network requires paid access. Earned from the traditional advertizing FT Group in the II quarter only 45% of revenue.

Advertizing in printing versions of newspapers and magazines always brought to publishing houses the most part of income. Therefore in crisis when advertisers lowered budgets in printed media, such dependence affected their financial position not in the best way. A part of large editions were forced to sell shares. The last example — the French Le Monde. According to the forecast of PricewaterhouseCoopers (PwC), only in 2013 it is possible to expect revenue growth of the paper press for 0.6%. Till this time the income of publishers from traditional advertizing will fall.

2010

Reduction of income forces newspapers, especially large, to actively reduce the staff, dismissing reporters and editors.

Today departments of news in the USA on average total 30% less employees, than in 2000, the report says. Besides, fall of income forces newspapers to advance more actively the Internet versions and to take from users money for access to materials on their websites. So, in the nearest future is going to start paid model of access to content The New York Times.

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