Any trademarks included are trademarks of their respective owners and are not affiliated with, nor endorsed by, PricewaterhouseCoopers LLP, its subsidiaries or affiliates. www.pwc.com www.iab.net IAB internet advertising revenue report 2015 full year results April 2016 An industry survey conducted by PwC and sponsored by the Interactive Advertising Bureau (IAB) www.pwc.com www.iab.net PwC Page 2 of 30 Table of Contents Background . 3 Executive summary . 4 Detailed findings. 6 Historical trends . 7 Ad formats . 12 Social Media . 15 Industries. 16 Pricing models . 18 Advertising market share . 20 Appendix . 23 PwC Page 3 of 30 Background About the IAB internet advertising revenue report Conducted by PwC Advisory Services LLC (“PwC”) on an ongoing basis, with results released quarterly, the “IAB Internet Advertising Revenue Report” was initiated by the Interactive Advertising Bureau (IAB) in 1996. This report utilizes data and information reported directly to PwC, publicly available online corporate data, and information provided by online ad selling companies. The results reported are considered to be an accurate measurement of internet/online/mobile advertising revenues because much of the data is compiled directly from information supplied by companies selling advertising online. The report includes data reflecting online advertising revenues from websites, commercial online services, ad networks and exchanges, mobile devices, and email providers, as well as other companies selling online advertising. The report is conducted independently by PwC on behalf of the IAB. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information. Only aggregate results are published and individual company information is held in strict confidence with PwC. Further details regarding scope and methodology are provided in the appendix to this report. David Silverman PwC PwC Page 4 of 30 Executive summary IAB internet advertising revenue report 2015 full year highlights Internet advertising revenues (“revenues”) in the United States totaled $59.6 billion for the full year of 2015, with Q4 2015 accounting for approximately $17.4 billion and Q3 2015 accounting for approximately $14.7 billion. Revenues for the full year of 2015 increased 20.4% over 2014. Key trends underlying 2015 results Revenues increase 20.4% in FY 2015 Internet advertising revenues in the United States totaled $17.4 billion in the fourth quarter of 2015, an increase of 18.3% from the 2015 third-quarter total of $14.7 billion and an increase of 22.8% from the 2014 fourth-quarter total of $14.2 billion. 2015 full year internet advertising revenues totaled $59.6 billion, up 20.4% from the $49.5 billion reported in 2014. “Mobiles impressive upswing is a testament to its increasing importance to marketers,” said Randall Rothenberg, President and CEO, IAB. “Digital video is also seeing strong growth, and we anticipate brands and media buyers will drive further excitement about the future of the medium at the upcoming Digital Content NewFronts.” Randall Rothenberg, President and CEO, IAB Mobile advertising increases 66% in FY 2015 Mobile advertising in the United States totaled $20.7 billion during FY 2015, a 66% increase from the prior year total of $12.5 billion. “Internet advertising was a disruptive innovation when the indu