In a report on Internet advertising, global consulting and auditing firm PricewaterhouseCoopers or PWC noted that worldwide Internet advertising revenue is forecast to grow from $135.42 billion in 2014 to $239.87 billion in 2019.
The Internet advertising industry is forecast to grow at a CAGR of 12.1% between 2014 and 2019. According to PWC, the segment will exceed TV to become the largest single advertising category by 2019.
In 2014, the PWC report noted, display Internet advertising revenue was the second-largest component of Internet advertising revenue. The consulting firm expects display Internet advertising to have a CAGR of 7.9% over the next five years. However, display Internet advertising revenue is expected to be overtaken by Mobile Internet advertising, which according to PWC is expected to grow at a CAGR of 23.1%.
PWC expects paid search Internet advertising revenue to grow from $53.13 billion in 2014 to $85.41 billion in 2019. In addition, it is expected to remain the largest constituent of Internet advertising. According to PWC, paid search is expected to account for 35.6% of total Internet advertising revenue in 2019.
Given the robust outlook for Internet advertising, it is not surprising that companies such as Social Reality Inc. (OTCQB:SCRI) are quite bullish. The Los Angeles-based company is a provider of tools to automate the digital advertising market. This morning, the company reported record revenue and net income profitability for the second quarter of 2015.
Christopher Miglino, Social Realty’s CEO and Chairman, said that the company is excited by the rapid growth it is experiencing and the growth validates the synergies of investments it has made at the end of 2014.
For the second quarter, Social Reality reported revenue of $10.76 million, representing an increase of 168% on a sequential basis. This was the fourth consecutive quarter-over-quarter increase in the company’s revenue. SCRI reported adjusted EBITDA of $1.8 million. Net income for the quarter was $416,000. For the full year, SCRI now expects revenue of $30 million.
CEO Miglino said that he is proud of the SCRI team for achieving net income profitability in the second quarter. He noted that achieving net income profitability has been a long-term goal for the company. Miglino noted that with this, SCRI has become one of the few profitable advertising technology companies. If the company achieves its full year revenue guidance, it would represent an increase of 486% over the previous year.
Investors cheered the strong results sending the stock higher by 20 cents, or 12.2% in late afternoon trading on Thursday to $1.85.
