Startup Talk: Digital advertising hits $17.6 billion in 3Q 2016, up 20% from year ago

by Talk Business & Politics staff (staff2@talkbusiness.net) 11 views 

Editor’s note: Each Thursday, Talk Business & Politics provides “Startup Talk,” a round-up of startup, technology and entrepreneurial news.

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DIGITAL ADVERTISING HITS $17.6 BILLION IN 3Q 2016, UP 20% FROM YEAR AGO

U.S. advertisers invested $17.6 billion in digital advertising in the third quarter of 2016, according to the latest IAB Internet Advertising Revenue Report released by IAB (Interactive Advertising Bureau) and prepared by PwC US. This marks the highest third quarter for digital advertising spending on record, and represents a 20% increase over the same time period in 2015. It also accounts for a 4.3% increase over the previous quarter.

The Q3 2016 revenue is estimated based upon a representative sample of the overall survey respondents. The data is compiled directly from information supplied by companies selling advertising on the internet.

The survey includes data concerning online advertising revenues from web sites, commercial online services, free e-mail providers, and all other companies selling online advertising.

“Digital has become a critical part of advertisers’ marketing strategies,” said David Silverman, a partner at PwC US. “Increasing media consumption on interactive screens will surely lead to even more investment in the digital landscape.”

GLOBAL ADVERTISING REVENUE TO HIT $532 BILLION IN 2016, TV REIGN NEARS END

Big brand budgets and quadrennial events such as the Olympics, European Football Championship and U.S. Presidential Election will drive 2016’s global advertising revenue growth to $532 billion, up 7.1% from a year ago, IHS Market said in a new report. Strong growth in global real private consumption also buoyed advertising revenue as brands tried to take advantage of heightened consumer spending. Advertising revenue accounted for 0.69% of global GDP in 2016, up from 0.66% in 2015, the report notes.

TV was still the number one medium globally for advertising revenue, accounting for $192 billion, or 36%, of global revenue despite the growth of online giants like Facebook, Google and Snapchat. However, revenue from online advertising will overtake TV within the next five years. In 2016, online advertising will account for almost $160 billion, or 30% of global revenue. Print advertising sits in third with $101 billion, followed by radio with 8.4% of the market and $47 billion in revenue. In the U.S., TV advertising revenue will make up roughly 38% of the country’s total; online is just behind with 36%.

WHIRLPOOL, AMAZON’S ALEXA TO LAUNCH ‘VOICE CONTROLLED’ APPLIANCES

At the 2017 CES show in Las Vegas, Whirlpool Corp. on Monday (Jan. 2) announced a new collaboration with Amazon to launch a suite of home appliances responsive to voice control through Alexa enabled devices. Consumers will soon be able to use their Amazon devices to have Alexa ask for help with a host of tasks on Whirlpool appliances such as adjusting the temperature of their oven or changing the wash cycle with their voice. The Whirlpool skill for Amazon Alexa will be available in early 2017.

“As we continue to explore innovative solutions, we always want to do so with consumers’ habits and needs in mind,” said Brett Dibkey, Whirlpool’s vice president of Integrated Business Units at Whirlpool Corporation. “As demand for a smart home ecosystem grows, consumers are looking for a wide variety of new ways to interact with their appliances, whether it’s on-product, digitally with an app, or through voice control.”

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