IAB Internet Advertising Revenue ReportHalf Year 2018 and Q2 2018November 2018IAB Half Year 2018 and Q2 2018 Internet Advertising Revenue ReportIAB Internet Ad Revenue Report: Half Year 2018 and Q2 2018AgendaWelcome IntroSue Hogan, SVP Research and Measurement, IABHalf Year 2018 and Q2 2018 Digital Ad Revenue HighlightsKristina Sruoginis, Research Director, IABDetailed Analysis of IAB PwC Half Year 2018 and Q2 2018 ReportDavid Silverman, Partner, PwCGuest PresentationBrian Wieser, CFA, Senior Analyst, Pivotal ResearchQ & AIAB Half Year 2018 and Q2 2018 Internet Advertising Revenue ReportImportant Notes on Q&AJournalists and IAB members can ask questions at any time during the presentations. Please type questions into the chat box on the webinar user interface. We will create a queue and answer as many questions as possible following the presentations Additional press questions can be directed to Laura Goldberg: Laura.Goldbergiab Additional questions from IAB members can be directed to Kristina Sruoginis: KristinaiabThe presentations and report will be available for download after the webinar at: iab/adrevenuereportIAB Half Year 2018 and Q2 2018 Internet Advertising Revenue ReportIAB Internet Advertising Revenue Report HighlightsHalf Year 2018 and Q2 2018Kristina Sruoginis, Research Director, IABIAB Half Year 2018 and Q2 2018 Internet Advertising Revenue ReportHalf Year 2018 Year-Over-Year Digital Ad Revenue Growth$ Billions*The Nielsen Company, Nielsen Ad Intel (Standard Calendar, Total includes B2B, FSI Coupons, Cinema, Out of Home), Oct. 2018. As of June 2017, Nielsen stopped tallying internet revenue.Traditional Media Ad Revenue Change*(HY 17 vs. HY 18)The Nielsen Company estimates traditionalmedia revenues for HY 2018 increased 3% from HY 2017$40.3$49.5$0$10$20$30$40$50$60HY 2017 HY 2018Digital Ad Revenue Growth (HY 2017 vs. HY 2018)21%23%GrowthHY 2017 numbers have been restated to reflect the inclusion of podcast revenue.IAB Half Year 2018 and Q2 2018 Internet Advertising Revenue ReportMobile Has Grown to Account for Nearly Two-Thirds of Digital AdRevenue for HY 18$ Billions$40.3$49.5$0$10$20$30$40$50$60HY 2017 HY 2018Mobile as a Percentage of Digital Ad Revenue Growth (HY 2017 vs. HY 2018)21%63%isMobile54%wasMobile$30.9$21.8Total Digital (Desktop + Mobile) Ad RevenueMobile Ad Revenue23%Total Growth42%MobileGrowthHY 2017 numbers have been restated to reflect the inclusion of podcast revenue.Most Users Access the Internet from Both Mobile and Desktop7ComScore US Media Metrix Multi-Platform, Total Audience (12 Mos. Avg. Jun. 17-Jun.18)Unique Monthly Users by DeviceDesktop, Tablet or Smartphone (Mobile Browser or Apps)Total Mobile MinutesTotal Mobile MinutesIAB Digital Trends: Consumer Usage, Ad Revenue and Impact HY 2018 ReportMobileDesktop MobileMultiplatform14%Desktop Only22%MobileOnly64%Both 71%29%However, Most Time Spent Online Tends to be on a Mobile Device8Nearly three-quarters of all internet time is spent on a mobile deviceComScore US Media Metrix Multi-Platform, Total Internet Time Spent (12 Mos. Avg. Jun. 17- Jun. 18)Avg. Monthly Online MinutesTime Spent Online by DeviceDesktop, Tablet or Smartphone (Mobile Browser or Apps)Total Mobile MinutesTotal Mobile MinutesIAB Digital Trends: Consumer Usage, Ad Revenue and Impact FY 2017 ReportDesktop Mobile71% 63%29% 37%Time Spent Online Ad RevenueDesktopMobileComScore US Media Metrix Multi-Platform, Total Internet Time Spent (MM) in an avg. month Jun. 17 Jun. 18Mobile as a Percent of Digital Time Spent vs. Ad RevenueHalf Year 2018 (Monthly Avg.) Half Year 2018Mobile Ad Revenue is Catching Up to Consumer Usage Media Time: 0:00 Ad Dollars: $IAB Digital Trends: Consumer Usage, Ad Revenue and Impact HY 2018 Report16$IAB Half Year 2018 and Q2 2018 Internet Advertising Revenue ReportHalf Year 2018 Ad Revenue: Digital vs. Traditional MediaHalf Year 2018 Ad Revenue ($ Billions)PercentYoY Change23%5%16%-15%-8%-3%$2.7 $3.6 $5.2 $14.6 $26.6 $49.5 Radio*Newspaper*Magazines*Cable TV*Broadcast TV*Digital*% Change in Ad Revenue from HY17 to HY18Source:*IAB Internet Ad Revenue Report*The Nielsen Company, Nielsen Ad Intel (does not include Spanish Language TV), Oct. 2018. As of June 2017, Nielsen stopped tallying internet revenue.IAB/PwC:Nielsen: