Internet Advertising Revenue ReportPrepared by:2019 half year results2AgendaSurvey methodologyHalf year results and quarterly trendsAdvertising formatsSocial mediaAudioPricing modelsAbout PwC3Survey MethodologySurvey ScopeThe IAB Internet Advertising Revenue Report is part of an ongoing IAB mission to provide an accurate barometer of Internet advertising growth.To achieve differentiation from existing estimates and accomplish industry-wide acceptance, key aspects of the survey include: Obtaining historical data directly from companies generating internet (desktop and mobile) advertising revenues; Making the survey as inclusive as possible, encompassing all forms of internet advertising, including websites, consumer online services, ad networks and exchanges, mobile devices; and Ensuring and maintaining a confidential process, only releasing aggregate data.MethodologyThroughout the reporting process, PwC: Compiles a database of industry participants selling internet advertising revenues. Conducts a quantitative mailing survey with leading industry players, including web publishers, ad networks, commercial online service providers, mobile providers, and other online media companies. Requests and compiles several specific data items, including monthly gross commissionable advertising revenue by transaction. Acquires supplemental data through the use of publicly disclosed information. Identifies non-participating companies and applies a conservative revenue estimate based on available public sources. Analyzes the findings, identifies and reports key trends.4Half year results & quarterly trends5Year-to-date revenues continue to show strong growthDigital revenues for HY 2019 totaled $57.9 billion, $8.4 billion (16.9%) higher than in HY 2018HY 2018 vs. HY 2019 internet advertising revenue($ billions)Source: IAB/PwC Internet Ad Revenue Report, HY 20196Quarterly growthRevenue in Q2 2019 totaled $29.9 billion, $4.3 billion (16.7%) higher than in Q2 2018Q2 2018 vs. Q2 2019 internet advertising revenue($ billions)Source: IAB/PwC Internet Ad Revenue Report, HY 20197Quarterly growth (contd)Revenue in Q1 2019 was $4.1 billion (17.2%) higher than in Q1 2018Q1 2018 vs. Q1 2019 internet advertising revenue($ billions)Source: IAB/PwC Internet Ad Revenue Report, HY 20198Historical quarterly revenue trendsQ2 2019 reaches $29.9 billionbut quarterly growth slows down compared to prior yearsQuarterly internet advertising revenue growth trends($ billions)Source: IAB/PwC Internet Ad Revenue Report, HY 20199Historical revenue mixFor the first time since 2009, first half revenues were less than the previous second half revenues by $30 millionHistorical revenue mix, first half vs. second half($ billions)Source: IAB/PwC Internet Ad Revenue Report, HY 201910Revenue concentrationTop 10 companies continue to account for the majority of total advertising revenues% share of total revenues(quarterly, $ billions)Source: IAB/PwC Internet Ad Revenue Report, HY 2019