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8/13/2019 WW and US Internet Ad Spend Report 2Q 2013 IDC 2013Aug00
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Filing Information: August 2013, IDC #242667, Volume: 1
Worldwide New Media Market Model: Update
U P D A T E
W o r l d w i d e a n d U . S . I n t e r n e t A d S p e n d R e p o r t 2 Q 1 3 :
F a c e b o o k O v e r t a k e s Y a h o o ! i n t h e U n i t e d S t a t e s
Karsten Weide
I N T H I S U P D A T E
This IDC update reports the total volume and growth rate of the worldwide, regional,
and U.S. Internet advertising spending for 2Q13 and forecasts U.S. growth for 3Q13
2Q14. It also reports the top U.S. new media companies' quarterly domestic ad sales,
growth rates, and market shares, as well as spending on major ad formats and their
growth rates and market shares.
A spreadsheet containing this document's data is available to IDC clients by request.
Follow Karsten Weide on Twitter: @KarstenW.
I D C O p i n i o n
Quarterly worldwide spending increased by 10.7% from $24.2 billion in 2Q12 to $26.8
billion in 2Q13. IDC also finds:
Quarterly U.S. spending expanded by 12.8% from $9.8 billion in 2Q12 to $11.1
billion in 2Q13. This is the second quarter in a row with a growth rate
substantially lower than those in 2012 (which had year-on-year rates of 1618%).
IDC therefore forecasts a moderate growth for 3Q13 of 13% to $11.7 billion and
predicts that spending for the entirety of 2013 will increase by 14.1% to $46.6billion. This weakness is largely caused by slow growth in the "traditional" online
search and display advertising businesses, perhaps partly caused by intense
advertiser interest in mobile advertising.
Facebook grew its U.S. revenue by 51% (an almost 20-point jump in growth
compared with that of the last quarter) from $450 million in 2Q12 to $680 million
in 2Q13. Because of that strong growth and continuing weak sales for Yahoo!,
Facebook has now taken over Yahoo! as fourth biggest publisher after Google,
eBay, and Microsoft in the United States (refer to Figures 10 and 11 and Tables
7 and 8). In terms of international sales, Facebook took over Yahoo! back in mid-
2011.
U.S. mobile advertising continues to grow very fast. Mobile search advertising
grew by 72.3% from $0.6 billion in 2Q12 to $1.1 billion in 2Q13. Mobile display
advertising grew by 71.5% from $0.4 billion in 2Q12 to $0.7 billion in 2Q13.
Growth in both mobile search and display advertising is so strong now that these
two formats have begun to eat into the market share of online search and display
advertising (refer to Table 4 and Figure 7). This is good news for players that are
strong in mobile (Google and Facebook) and more bad news for players that still
primarily rely on online ads (Microsoft, Yahoo!, AOL, and New York Times).
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T A B L E 1
Wor l d w i d e D i g i t a l Ad ve r t i s i n g Re ve nue b y Re g i on , 3Q092Q13 ( $B )
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
United States 6.5 7.3 7.1 7.3 7.6 8.4 8.0 8.5 8.7 9.8 9.4 9.8 10.3 11.4 10.7 11.1
Year-over-year growth (%) -2.1 2.3 11.3 16.5 17.2 15.3 13.8 15.3 14.3 16.4 17.3 15.8 17.6 16.3 13.4 12.8
Canada 0.4 0.4 0.5 0.5 0.5 0.6 0.5 0.6 0.6 0.6 0.6 0.6 0.6 0.7 0.6 0.6
Year-over-year growth (%) 19.2 24.6 24.3 30.1 30.9 28.8 14.4 16.0 15.0 17.0 9.2 7.9 9.5 8.3 4.9 4.4
Western Europe 4.9 5.5 5.0 5.2 5.4 6.0 6.0 6.3 6.5 7.3 6.1 6.4 6.7 7.4 6.6 6.8
Year-over-year growth (%) 9.1 13.9 5.4 10.3 11.0 9.2 19.4 21.0 20.0 22.1 2.3 1.0 2.6 1.4 7.3 6.8
Japan 1.7 1.9 1.9 2.0 2.1 2.3 2.1 2.3 2.3 2.6 2.2 2.3 2.4 2.7 2.2 2.3
Year-over-year growth (%) 21.9 27.4 14.4 19.7 20.4 18.5 12.9 14.4 13.4 15.5 4.1 2.8 4.4 3.2 -2.5 -3.0
Asia/Pacific (excluding Japan) 1.5 1.7 2.0 2.0 2.1 2.3 2.6 2.7 2.8 3.2 3.3 3.5 3.6 4.0 4.0 4.1
Year-over-year growth (%) 19.6 24.9 35.2 41.4 42.3 40.0 32.0 33.7 32.6 35.0 28.9 27.3 29.2 27.8 19.9 19.3
Central and Eastern Europe 0.4 0.5 0.5 0.5 0.5 0.6 0.8 0.8 0.9 1.0 0.9 0.9 1.0 1.1 1.0 1.1
Year-over-year growth (%) -14.0 -10.2 22.7 28.4 29.2 27.1 57.1 59.2 57.8 60.6 13.9 12.4 14.1 12.9 15.8 15.2
Middle East and Africa 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Year-over-year growth (%) 154.1 165.5 31.3 37.4 38.2 36.0 36.9 38.8 37.6 40.0 16.8 15.3 17.0 15.8 24.7 24.1
Latin America 0.2 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.4 0.5 0.5 0.5 0.5 0.5
Year-over-year growth (%) 22.1 27.5 23.7 29.5 30.3 28.2 31.4 33.2 32.0 34.4 22.8 21.2 23.1 21.7 18.0 17.4
Worldwide 15.8 17.6 17.3 18.0 18.8 20.6 20.7 21.8 22.5 25.2 23.3 24.2 25.4 28.1 25.9 26.8
Year-over-year growth (%) 6.3 11.0 13.0 18.3 19.0 17.1 19.2 20.8 19.7 21.9 12.8 11.4 13.1 11.8 11.3 10.7
Note: International growth rates include currency exchange rate influences.
Source: IDC, 2013
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U.S. Development
Figure 2 shows absolute digital advertising spending in the United States; Figure 3
outlines year-on-year growth rates for each quarter.
F I G U R E 2
U . S . D i g i t a l A d v e r t i s i n g R e v e n u e , 4 Q 0 7 2 Q 1 3
Source: IDC, 2013
F I G U R E 3
U . S . D i g i t a l A d v e r t i s i n g R e v e n u e Y e a r - o n - Y e a r G r o w t h , 4 Q 0 7 2 Q 1 3
Source: IDC, 2013
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F I G U R E 5
U . S . D i g i t a l A d v e r t i s i n g R e v e n u e G r o w t h b y F o r m a t , 4 Q 0 7 2 Q 1 3
Note: Display ad revenue contains display ads proper (banner, rectangle, etc.), rich media ads,
video ads, and interstitials.
Source: IDC, 2013
F I G U R E 6
U . S . M o b i l e O n l i n e A d s R e v e n u e G r o w t h , 4 Q 0 7 2 Q 1 3
Note: Mobile ads do not include SMS/MMS ads.
Source: IDC, 2013
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T A B L E 3
U . S . D i g i t a l Ad ve r t i s i n g Re ve nue G r ow th b y Fo r ma t , 3Q092Q13 ( $B )
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Online search ads 3.6 4.0 3.8 3.8 3.9 4.2 3.9 3.9 4.0 4.4 4.4 4.5 4.6 5.1 4.6 4.7
Year-over-year growth (%) -3.7 2.3 7.7 10.7 8.9 5.4 1.4 2.1 1.2 6.2 11.9 14.8 15.9 14.5 5.5 4.3
Online display ads 1.8 2.1 2.0 2.2 2.2 2.5 2.4 2.6 2.6 2.9 2.8 2.9 3.0 3.3 3.0 3.0
Year-over-year growth (%) 6.5 8.0 18.0 22.1 26.2 23.5 20.2 19.5 17.5 15.2 18.9 12.7 14.8 13.5 5.8 4.7
Mobile search ads 0.1 0.1 0.1 0.2 0.2 0.2 0.3 0.4 0.4 0.5 0.6 0.6 0.7 0.8 1.0 1.1
Year-over-year growth (%) 162.3 184.3 214.2 215.6 198.1 173.4 157.1 143.5 126.9 103.1 78.9 67.3 63.6 64.4 70.5 72.3
Mobile display ads 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.3 0.3 0.4 0.5 0.5 0.6 0.7
Year-over-year growth (%) 166.2 157.5 148.2 140.3 132.8 123.6 113.4 111.5 116.3 127.7 149.1 150.5 135.9 109.6 84.0 71.5
Classified ads 0.7 0.7 0.7 0.7 0.7 0.8 0.6 0.7 0.7 0.8 0.7 0.7 0.7 0.8 0.8 0.8
Year-over-year growth (%) -20.8 -18.9 -4.9 5.1 4.8 8.3 -6.5 -0.6 -1.9 0.1 7.3 4.9 6.8 6.1 13.4 12.8
Other ads 0.4 0.4 0.4 0.5 0.5 0.6 0.7 0.8 0.8 0.9 0.7 0.7 0.7 0.8 0.8 0.8
Year-over-year growth (%) 0.0 -1.6 15.3 25.8 32.3 32.9 78.5 67.3 64.2 58.4 -2.4 -12.5 -10.3 -10.8 13.4 12.8
Notes:
Display ad revenue contains display ads proper (banner, rectangle, etc.), rich media ads, video ads, and interstitials.
Mobile ads do not include SMS/MMS ads.
Source: IDC, 2013
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F I G U R E 7
U . S . D i g i t a l A d v e r t i s i n g R e v e n u e S h a r e b y F o r m a t , 4 Q 0 7 2 Q 1 3
Notes:
Display ad revenue contains display ads proper (banner, rectangle, etc.), rich media ads, video
ads, and interstitials.
Mobile ads do not include SMS/MMS ads.
Source: IDC, 2013
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T A B L E 4
U . S . D i g i t a l Ad ve r t i s i n g Re ve nue Sha r e b y Fo r ma t , 3Q092Q13 (%)
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Online search ads 55.4 54.4 54.4 51.9 51.5 49.7 48.4 45.9 45.6 45.4 46.2 45.5 44.9 44.7 43.0 42.1
Online display ads 27.2 28.2 28.2 29.4 29.3 30.2 29.7 30.5 30.1 29.9 30.1 29.7 29.3 29.2 28.1 27.6
Mobile search ads 1.0 1.2 1.7 2.1 2.5 3.0 3.9 4.5 5.1 5.2 6.0 6.5 7.0 7.3 9.0 10.0
Mobile display ads 0.6 0.7 0.9 1.0 1.2 1.3 1.7 1.9 2.3 2.6 3.5 4.1 4.5 4.7 5.7 6.2
Classified ads 10.1 9.6 9.4 9.1 9.1 9.0 7.7 7.8 7.8 7.7 7.1 7.1 7.1 7.1 7.1 7.1
Other ads 5.7 5.9 5.4 6.5 6.5 6.8 8.5 9.4 9.3 9.2 7.1 7.1 7.1 7.1 7.1 7.1
Notes:
Display ad revenue contains display ads proper (banner, rectangle, etc.), rich media ads, video ads, and interstitials.
Mobile ads do not include SMS/MMS ads.
Source: IDC, 2013
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U.S. Top New Media Companies
Table 5 lists the estimated quarterly U.S. net revenue numbers for the top new media
companies and their advertising partners. Figures 8 and 9 and Table 6 show the net
U.S. digital advertising growth rates for the same entities.
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T A B L E 5
U . S . D i g i t a l Ad ve r t i s i n g Ne t Re ve nue ( E x c l u d i ng TAC ) b y En t i t y , 3Q092Q13 ( $B )
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Google 1.98 2.24 2.25 2.33 2.52 2.93 2.93 3.04 3.24 3.63 3.53 3.62 3.80 4.18 4.04 4.07
Google ad partners 0.47 0.54 0.54 0.57 0.66 0.77 0.71 0.73 0.78 0.90 0.87 0.91 1.01 1.10 1.02 1.02
eBay 0.58 0.55 0.54 0.58 0.61 0.58 0.62 0.67 0.66 0.66 0.71 0.73 0.74 0.79 0.80 0.83
Microsoft 0.40 0.44 0.42 0.44 0.42 0.50 0.48 0.51 0.49 0.57 0.51 0.58 0.57 0.65 0.61 0.62
Microsoft ad partners 0.00 0.00 0.01 0.02 0.02 0.05 0.05 0.07 0.07 0.08 0.07 0.08 0.08 0.10 0.09 0.10
Facebook 0.14 0.18 0.21 0.24 0.26 0.34 0.31 0.37 0.37 0.43 0.39 0.45 0.51 0.59 0.52 0.68
Yahoo! 0.71 0.79 0.72 0.71 0.71 0.76 0.65 0.64 0.62 0.70 0.65 0.65 0.67 0.74 0.64 0.64
Yahoo! ad partners 0.24 0.27 0.25 0.25 0.26 0.09 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.02 0.02
IAC 0.12 0.13 0.14 0.14 0.13 0.14 0.16 0.16 0.16 0.19 0.22 0.22 0.24 0.26 0.26 0.28
IAC ad partners 0.03 0.04 0.04 0.04 0.04 0.04 0.05 0.05 0.05 0.05 0.04 0.04 0.04 0.04 0.04 0.05
AOL 0.23 0.26 0.23 0.21 0.21 0.23 0.22 0.22 0.21 0.25 0.22 0.23 0.22 0.27 0.23 0.23
AOL ad partners 0.08 0.10 0.07 0.05 0.05 0.06 0.06 0.07 0.07 0.07 0.08 0.08 0.08 0.09 0.08 0.08
YP 0.21 0.22 0.22 0.24 0.24 0.25 0.22 0.24 0.24 0.25 0.22 0.24 0.24 0.25 0.22 0.24
Walt Disney (DIMG) 0.06 0.06 0.06 0.06 0.06 0.07 0.07 0.08 0.08 0.09 0.08 0.09 0.09 0.10 0.08 0.09
DIMG = Disney Interactive Media Group
TAC = traffic acquisition costs
Notes:
Google ad partners net TAC payouts to AOL and IAC.
Microsoft ad partners net TAC payout to Facebook.
Yahoo! ad partners net TAC payout to eBay.
All fiscal quarters are normalized to calendar quarters.
Source: IDC, 2013
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F I G U R E 8
U . S . D i g i t a l A d v e r t i s i n g N e t R e v e n u e G r o w t h ( E x c l u d i n g T A C ) b y C o m p a n y ,
4 Q 0 7 2 Q 1 3
TAC = traffic acquisition costs
Source: IDC, 2013
F I G U R E 9
U . S . D i g i t a l A d v e r t i s i n g N e t R e v e n u e G r o w t h ( E x c l u d i n g T A C ) o f F a c e b o o k ,
1 Q 0 9 2 Q 1 3
TAC = traffic acquisition costs
Source: IDC, 2013
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T A B L E 6
U . S . D i g i t a l Ad ve r t i s i n g Ne t Re ve nue G r ow th ( E x c l u d i ng TAC ) b y En t i t y , 3Q092Q13 (%)
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
AOL -11.6 -12.8 -12.3 -11.3 -11.7 -10.4 -4.9 1.7 3.7 8.2 2.3 4.2 3.3 8.0 3.9 3.1
AOL ad partners -5.2 0.8 -12.9 -36.7 -34.8 -37.1 -16.0 31.1 29.5 21.8 23.9 17.5 15.5 27.7 7.1 7.7
eBay 1.4 -0.3 -2.4 7.6 4.0 5.7 14.6 15.3 8.3 14.4 13.9 8.3 12.3 18.4 13.1 14.0
Facebook 174.7 158.1 160.8 127.9 86.4 82.3 47.3 50.4 41.4 28.6 27.2 22.5 37.3 37.6 32.1 51.0
Google 4.8 11.8 20.7 27.0 27.3 30.9 30.2 30.5 28.5 24.0 20.7 18.9 17.3 15.0 14.3 12.5
Google ad partners 11.4 24.5 29.8 35.5 39.3 43.1 33.3 27.4 19.7 17.8 22.4 25.3 28.6 21.6 16.7 11.9
IAC -1.6 10.5 33.2 24.7 10.6 8.3 12.6 14.6 24.1 37.9 39.1 41.4 44.8 38.1 19.0 27.1
IAC ad partners -12.5 -0.1 10.8 24.7 38.9 18.7 23.8 14.6 8.7 14.1 -18.9 -17.6 -15.6 -7.1 19.0 27.1
Microsoft -9.6 -14.9 5.7 11.1 6.3 14.0 12.5 15.7 17.2 12.5 8.3 13.3 15.6 14.7 18.0 6.8
Microsoft ad partners -66.3 -81.3 -9.2 124.9 443.0 1,518.7 494.4 312.7 186.3 82.4 33.8 14.7 13.3 18.3 25.5 33.8
Walt Disney (DIMG) -18.8 -7.0 14.8 10.8 16.8 17.2 20.7 39.0 27.7 19.5 10.2 8.0 15.2 13.8 5.9 0.4
Yahoo! -14.9 -10.9 -3.7 -1.1 0.6 -4.5 -10.8 -11.0 -13.7 -7.5 1.1 2.2 8.9 5.8 -2.4 -1.9
Yahoo! ad partners 1.9 5.0 5.2 8.2 9.7 -68.2 -88.4 -88.2 -89.2 -62.4 8.9 10.7 1.2 3.1 -39.9 -40.3
YP -2.3 -2.3 14.3 14.3 14.3 14.3 NA NA NA NA NA NA NA NA NA NA
DIMG = Disney Interactive Media Group
TAC = traffic acquisition costs
Notes:
Google ad partners net TAC payouts to AOL and IAC.
Microsoft ad partners net TAC payout to Facebook.
Yahoo! ad partners net TAC payout to eBay.
Source: IDC, 2013
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Figures 10 and 11 and Table 7 show the estimated net U.S. market shares (excluding
traffic acquisition costs [TAC]) for the top new media companies.
Table 8 presents the estimated gross U.S. market shares (including TAC) for the top
new media companies.
F I G U R E 1 0
U . S . D i g i t a l A d v e r t i s i n g N e t R e v e n u e S h a r e ( E x c l u d i n g T A C ) o f G o o g l e ,
4 Q 0 7 2 Q 1 3
TAC = traffic acquisition costs
Source: IDC, 2013
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F I G U R E 1 1
U . S . D i g i t a l A d v e r t i s i n g N e t R e v e n u e S h a r e ( E x c l u d i n g T A C ) b y C o m p a n y ,
4 Q 0 7 2 Q 1 3
DIMG = Disney Interactive Media Group
TAC = traffic acquisition costs
Source: IDC, 2013
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T A B L E 7
U . S . D i g i t a l Ad ve r t i s i n g Ne t Re ve nue Sha r e ( E x c l u d i ng TAC ) b y En t i t y , 3Q092Q13 (%)
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Google 30.4 30.7 31.8 31.8 33.0 34.9 36.4 35.9 37.1 37.1 37.5 36.9 37.0 36.7 37.8 36.8
Google ad partners 7.2 7.4 7.6 7.8 8.6 9.1 8.9 8.6 9.0 9.2 9.3 9.3 9.8 9.7 9.5 9.2
eBay 8.9 7.5 7.7 7.9 7.9 6.9 7.7 7.9 7.5 6.8 7.5 7.4 7.2 6.9 7.5 7.5
Microsoft 6.1 6.1 6.0 6.0 5.5 6.0 5.9 6.0 5.7 5.8 5.5 5.9 5.6 5.7 5.7 5.6
Microsoft ad partners 0.1 0.0 0.1 0.2 0.3 0.5 0.6 0.8 0.8 0.9 0.7 0.8 0.8 0.9 0.8 0.9
Facebook 2.1 2.5 3.0 3.3 3.4 4.0 3.9 4.4 4.2 4.4 4.2 4.6 4.9 5.2 4.9 6.2
Yahoo! 10.9 10.9 10.3 9.7 9.4 9.0 8.0 7.5 7.1 7.2 6.9 6.6 6.5 6.5 6.0 5.8
Yahoo! ad partners 3.6 3.7 3.6 3.4 3.4 1.0 0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2
IAC 1.8 1.8 2.0 1.9 1.7 1.7 1.9 1.8 1.9 2.0 2.3 2.3 2.3 2.3 2.4 2.5
IAC ad partners 0.5 0.5 0.5 0.5 0.6 0.5 0.6 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.4 0.4
AOL 3.6 3.5 3.2 2.9 2.7 2.8 2.7 2.6 2.4 2.6 2.3 2.3 2.2 2.4 2.1 2.1
AOL ad partners 1.2 1.3 1.0 0.7 0.7 0.7 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.7
YP 3.2 3.0 3.2 3.2 3.1 3.0 2.8 2.8 2.7 2.6 2.4 2.4 2.3 2.2 2.1 2.1
Walt Disney (DIMG) 0.8 0.9 0.8 0.8 0.8 0.9 0.9 1.0 0.9 0.9 0.8 0.9 0.9 0.9 0.8 0.8
DIMG = Disney Interactive Media Group
TAC = traffic acquisition costs
Notes:
Google ad partners net TAC payouts to AOL and IAC.
Microsoft ad partners net TAC payout to Facebook.
Yahoo! ad partners net TAC payout to eBay.
Source: IDC, 2013
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T A B L E 8
U . S . D i g i t a l Ad ve r t i s i n g G r o s s Re ve nue Sha r e ( I n c l u d i ng TAC ) b y En t i t y , 3Q092Q13 (%)
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Google 37.6 38.1 39.4 39.6 41.6 44.0 45.3 44.6 46.1 46.4 46.8 46.2 46.9 46.4 47.4 46.1
eBay 8.9 7.5 7.7 7.9 7.9 6.9 7.7 7.9 7.5 6.8 7.5 7.4 7.2 6.9 7.5 7.5
Microsoft 6.2 6.1 6.1 6.2 5.8 6.5 6.5 6.8 6.5 6.7 6.2 6.7 6.3 6.6 6.5 6.5
Facebook 2.1 2.5 3.0 3.3 3.4 4.0 3.9 4.4 4.2 4.4 4.2 4.6 4.9 5.2 4.9 6.2
Yahoo! 14.5 14.6 13.8 13.1 12.8 10.0 8.4 7.9 7.4 7.5 7.3 7.0 6.8 6.8 6.1 5.9
IAC 2.3 2.2 2.5 2.4 2.3 2.1 2.5 2.4 2.4 2.4 2.7 2.6 2.7 2.7 2.8 3.0
AOL 4.8 4.9 4.3 3.6 3.4 3.5 3.5 3.3 3.2 3.3 3.2 3.1 2.9 3.2 2.9 2.9
YP 3.2 3.0 3.2 3.2 3.1 3.0 2.8 2.8 2.7 2.6 2.4 2.4 2.3 2.2 2.1 2.1
Walt Disney (DIMG) 0.8 0.9 0.8 0.8 0.8 0.9 0.9 1.0 0.9 0.9 0.8 0.9 0.9 0.9 0.8 0.8
DIMG = Disney Interactive Media GroupTAC = traffic acquisition costs
Source: IDC, 2013
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18 #242667 2013 IDC
Figure 12 shows the gross and net U.S. digital advertising revenue market shares of
the top media companies in 1Q13 (with segmentation for net revenue and TAC).
F I G U R E 1 2
U . S . D i g i t a l A d v e r t i s i n g R e v e n u e S h a r e b y E n t i t y , 2 Q 1 3
DIMG = Disney Interactive Media Group
TAC = traffic acquisition costs
Notes:
Google TAC net TAC payouts to AOL and IAC.
Microsoft TAC net TAC payout to Facebook.
Yahoo! TAC net TAC payout to eBay.
Source: IDC, 2013
Figure 13 and Table 9 show the major players' U.S. net revenue shares in searchadvertising. Figure 14 and Table 10 present the major players' U.S. net revenue
shares in display advertising.
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F I G U R E 1 3
U . S . O n l i n e S e a r c h A d v e r t i s i n g N e t R e v e n u e S h a r e ( E x c l u d i n g T A C )
b y E n t i t y , 4 Q 0 7 2 Q 1 3
Source: IDC, 2013
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T A B L E 9
U . S . On l i n e S e a r c h Ad ve r t i s i n g Ne t Re ve nue Sha r e ( E x c l u d i ng TAC ) b y En t i t y , 3Q092Q13 (%)
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Google 50.3 51.4 50.9 50.8 51.7 56.4 58.7 57.8 58.8 60.0 59.0 56.1 56.4 57.9 60.5 57.9
Microsoft 5.5 5.6 6.3 6.9 6.9 6.8 7.9 8.4 8.8 8.7 9.5 9.7 9.8 9.7 11.3 11.7
Yahoo! 9.8 9.3 9.2 9.1 8.6 7.8 7.0 7.1 6.8 6.2 6.6 6.2 6.5 6.1 6.4 6.2
IAC 3.0 2.9 3.3 3.2 3.0 3.0 3.6 3.6 3.7 3.9 4.5 4.5 4.6 4.7 5.1 5.5
AOL 3.1 2.9 2.5 2.4 2.2 2.1 2.0 2.0 1.9 1.8 1.8 1.7 1.7 1.7 1.8 1.7
eBay 0.8 0.3 0.7 1.0 1.0 0.6 1.2 1.8 1.3 0.7 1.3 1.7 1.2 0.7 1.3 1.6
TAC = traffic acquisition costs
Source: IDC, 2013
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2013 IDC #242667 21
F I G U R E 1 4
U . S . O n l i n e D i s p l a y A d v e r t i s i n g N e t R e v e n u e S h a r e ( E x c l u d i n g T A C )
b y E n t i t y , 4 Q 0 7 2 Q 1 3
Source: IDC, 2013
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T A B L E 1 0
U . S . On l i n e D i s p l a y Ad ve r t i s i n g Ne t Re ve nue Sha r e ( E x c l u d i ng TAC ) b y En t i t y , 3Q092Q13 (%)
3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Google 6.7 6.7 10.9 13.4 15.6 15.8 18.8 20.9 22.4 21.1 21.6 23.5 23.5 21.3 24.1 25.0
Yahoo! 16.0 17.2 15.4 14.5 14.2 15.0 13.8 12.4 11.6 13.0 11.4 11.4 10.8 11.5 9.9 10.1
Facebook 5.5 6.2 7.3 7.8 8.1 9.1 9.7 10.7 10.6 11.1 11.0 11.4 11.0 10.1 9.2 9.4
AOL 6.9 7.0 6.5 5.5 5.3 5.7 5.8 5.4 5.3 5.9 5.0 5.2 4.7 5.5 4.9 5.0
Walt Disney (DIMG) 3.1 3.1 3.0 2.8 2.9 2.9 3.0 3.3 3.1 3.0 2.8 3.1 3.1 3.0 2.8 3.0
Microsoft 11.1 10.7 9.0 8.2 6.7 8.6 7.0 7.1 5.5 6.2 3.6 5.1 3.9 4.8 3.0 2.5
IAC 0.7 0.6 0.7 0.7 0.6 0.6 0.7 0.6 0.6 0.7 0.7 0.7 0.7 0.7 0.8 0.9
eBay 1.4 1.3 1.1 1.1 1.1 0.5 0.3 0.3 0.3 0.4 0.3 0.4 0.4 0.5 0.6 0.5
DIMG = Disney Interactive Media Group
TAC = traffic acquisition costs
Source: IDC, 2013
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F u t u r e O u t l o o k
IDC forecasts U.S. spending will grow by 13% to $11.7 billion in 3Q13 and predicts
spending for the entirety of 2013 will increase by 14.1% to $46.6 billion.
E s s e n t i a l G u i d a n c e
Sales in the second quarter continued the sluggish growth that began in 1Q13; the
economic outlook for both the United States and the world remains uncertain, and
IDC expects slow growth to continue. Weak growth is caused by slow sales in online
ads, whereas mobile ads continue to grow at a breakneck pace.
L E A R N M O R E
R e l a t e d R e s e a r c h
Worldwide New Media Market Model, 1H13: Worldwide and U.S. Data (IDC
#242211, June 2013)
Worldwide and U.S. Internet Ad Spend Report 1Q13: Slow First Quarter, Muted
2013 Outlook(IDC #241094, May 2013)
M e t h o d o l o g y
This IDC update tracks the total volume and growth rate of the worldwide, regional,
and U.S. Internet advertising spending for the preceding quarter and forecasts U.S.
growth for the succeeding four quarters. It also reports the top U.S. new media
companies' quarterly domestic ad sales, growth rates, and market shares as well as
spending on major ad formats and their growth rates and market shares.
For U.S. companies' numbers, this document for the most part ignores that share of
the revenue called traffic acquisition costs (TAC). Some of the companies this
document covers run networks of third-party Web sites on which they sell ad space,
thereby generating additional revenue. Traffic acquisition costs are the part of this
revenue that they pay out to the partners in their networks. We call revenue including
TAC gross revenue and revenue excluding TAC net revenue. As far as particular
companies' results are concerned, this document almost exclusively discusses net
revenue because that is the amount of money that remains with a company, is at its
disposal, and influences its future capabilities and competitiveness. We do, however,
address gross revenue at some points because it is a measure of control over the
market.
This document is based on a model that is populated with data from companies'
quarterly and annual reports, earnings calls, interviews with company representatives,
news coverage, and estimates.
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To calculate the net U.S. Internet advertising sales market shares, the model looks at
the quarterly total gross Internet advertising revenue of the following top U.S. new
media operations:
AOL
eBay
IAC
Microsoft (Online Services Division [OSD] plus ad revenue in the Windows Live
division)
Walt Disney
Yahoo!
YP
Where detailed numbers are not available, the model calculates revenue and market
shares as follows: From the companies' total gross advertising revenue, the model
first subtracts TAC (where applicable), thus arriving at their total net revenue. From
this total net revenue, it then subtracts the international portion of each company's
sales (where applicable). This way, the model arrives at the net U.S. advertising
revenue (excluding TAC) of each company. By adding each company's revenue, we
arrive at their total U.S. Internet advertising revenue.
In the next step, the model estimates the total U.S. Internet advertising volume byassuming that the top companies stand for about 80% of the market that is, that
the residual, long-tail market represents 20%. Then the model calculates the market
share of each major company by expressing it in relation to the overall market
volume.
To forecast U.S. ad spending for 2Q131Q14, the model assumes that growth rates
follow a historically established exponential decay curve as the digital ad market
matures, adjusted by the leading economic indicator for the United States as made
available by the University of Ohio.
To estimate current spending on search ads, display ads (comprising display ads
proper [such as banner and rectangle ads], rich media ads, video ads, andinterstitials), classifieds, and "other" ads, the model follows a similar approach as
described for overall digital ad spending previously. It also establishes each ad
format's growth rate and market share.
The model estimates quarterly ad spend in Western Europe, Japan, Asia/Pacific
(excluding Japan) (APEJ), Canada, Central and Eastern Europe (CEE), Middle East
and Africa (MEA), and Latin America based on the forecast of the Worldwide New
Media Model and Forecast (NMMM), adjusted with data on recent spending.
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All numbers are nominal (current) dollar amounts as they report actual current
spending. All growth rates in this document are annual (year-on-year) growth rates.
For the sake of comparability, any data relating to companies not on calendar
business years (Microsoft and Walt Disney) is normalized to calendar quarters. For
example, when we talk about Microsoft's third-quarter results, we mean the third
calendar quarter of a given year, not Microsoft's third fiscal quarter.
The ad spend report model is continuously being updated and modified to improve
estimates; companies' restated results are corrected and errors are fixed. Numbers
are therefore liable to change. In this edition, the following changes were made:
Updated forecast 2013 regional total digital advertising numbers based on most
recent numbers in latest New Media Market Model (1H13)
Broke out mobile search and display ad spending and their respective market
shares
C o p y r i g h t N o t i c e
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