Online Ad Revenue Up, but Bots Are Stealing Some of It

Online ad revenue soldiers on despite adversity – fraud from bots being one such example; plus, Food & Wine goes all in on mobile

Have you noticed an uptick in your online ad revenue?

If so, take pride in keeping pace with the rest of the industry. 2015 has seen a jump, from several sources.

If not, don’t despair: 2015 has also seen a jump in the spread of bot activity, leeching online ad revenue from publishers and other brands.

MediaPost has articles on those digital publishing trends and more. Let’s see what they have for us to start the week!

Online Ad Revenue Rises to $27.5 Billion in First Half of 2015

U.S. online ad revenue is up 19% to $27.5 billion so far in 2015 year-over-year from 2014, according to the IAB Internet Advertising Revenue Report released last week, MediaPost reports.

“Independent studies from agencies like RKG Merkle also saw an increase in search. Google U.S. paid-search spending rose 18% year on year (YoY) in Q3 2015, up from 12% in the previous quarter. Click growth improved to 13%, following a 1% decline in Q2. The cost per click (CPC) rose 5% YoY. .. Smartphones produced 27% of paid-search clicks in Q3 in the U.S., up from 20% a year earlier. Tablet click share fell to 16%, from 18% a year earlier. Phones and tablets combined for 32% of search spending, according to RKG Merkle,” Laurie Sullivan writes.

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“The IAB report also notes that mobile revenue rose 54% to $8.2 billion in the first half of 2015. The media now represents 30% of the revenue generated by the entire Internet advertising marketplace, up from 23% at HY 2014 … Digital video, a component of display-related advertising, reached $2 billion in the first half of 2015, a 35% year-over-year jump from $1.5 billion in the first half of 2014. Social media revenue, advertising delivered on social platforms – including social networking, and social gaming Web sites and apps – rose 51% to $4.4 billion in HY 2015, compared with a year-ago.”

Is Bot Fraud Costing You Online Ad Revenue?

According to MediaPost, yes, for digital advertisers.

Upward of one-third, if a study from Distil Networks is to be believed. Automated programs that bait and divert clicks are dirtying the name of decent advertisers.

“The study also found that most publishers and advertisers – 75% and 59%, respectively – lack the means to or are unsure how to distinguish human from non-human traffic,” Erik Sass writes.

“Far from being another potential cost, this is actually a missed revenue opportunity, as 37% of advertisers are willing to pay a premium of 11% or more to ensure that traffic to their campaigns comes from real human beings.”

With Redesign, Food & Wine to Focus on Mobile

The latest Time Inc. digital gambit is a revamping of big-time brand Food & Wine, MediaPost reports.

“Advertisers want to be affiliated with the food world not just because it’s fun, but because research shows that the epicurean consumer is also more passionate about other things in their lives, including travel, technology, health, style, you name it,” Time Inc. Vice President and Food & Wine Publisher Christina Grdovic said in a statement.

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To read more about online ad revenue in the news, visit MediaPost.

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