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For the first time, U.S. Internet advertising revenue has surpassed that of broadcast television thanks to sharp growth in mobile and digital video ads.
That's according to a report from the Interactive Advertising Bureau, which said Thursday that Internet advertising revenue rose 17 percent to a record $42.8 billion in 2013. Broadcast TV ad revenue, in comparison, was $40.1 billion in 2013.
Mobile advertising revenue more than doubled to $7.1 billion from $3.4 billion in 2012 as companies like Facebook, Google and Twitter boosted their mobile presence.
IAB is made up of more than 600 media and technology companies that sell most of the online advertising in the U.S. The report is based on a survey conducted by PricewaterhouseCoopers.
U.S. interactive advertising revenues for 2013 hit an all-time high of $42.8 billion, according to the IAB Internet Advertising Revenue Report for the full-year, exceeding broadcast television advertising* revenues ($40.1 billion), for the first time ever. This momentous figure marks an increase of 17 percent from 2012’s landmark revenues of $36.6 billion. The report, unveiled today by the Interactive Advertising Bureau (IAB) and prepared by PwC U.S., also reveals that fourth quarter revenues for 2013 came in at $12.1 billion, an increase of 17 percent from the $10.3 billion brought in during the same quarter in 2012. In addition, this total represents an uptick of 14 percent from 2013’s third quarter revenues at $10.6 billion.
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“The news that interactive has outperformed broadcast television should come as no surprise,” said Randall Rothenberg, President and CEO, IAB. “It speaks to the power that digital screens have in reaching and engaging audiences. In that same vein, the staggering growth of mobile is clearly a direct response to how smaller digital screens play an integral role in consumers' lives throughout the day, as well as their critical importance to cross-screen experiences.”
“Our survey confirms that we are fully in transition to the post-desktop era,” said David Silverman, Partner, PwC U.S. “Triple digit advertising revenue growth from mobile devices contrasted the more tepid 8 percent growth from traditional computer screens. This is simply a reflection of the change in how and where consumers are viewing their information—on the go!”
“Digital marketing generates large reach and many possibilities to create impact across consumers’ purchase consideration processes, both critically important to advertisers as they seek marketing investments that have value ” said Sherrill Mane, Senior Vice President, Research, Analytics, and Measurement, IAB.
Here are the results from the full year in comparison with last year’s numbers:
|Revenue (Ad Formats)|
|Classifieds and Directories||7%||$2,430||6%||$2,597|
|- Digital Video Commercials||6%||$2,330||7%||$2,784|
|- Ad banners / display ads||21%||$7,721||19%||$7,943|
|- Rich media||3%||$1,113||3%||$1,328|
|Revenue (Pricing Models)|
IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PwC. The results are considered the most accurate measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertisements on the internet.
The survey includes data concerning online advertising revenues from Web sites, commercial online services, free email providers, and all other companies selling online advertising. The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first and third quarters. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information.
A copy of the full report is available at: iab.net/AdRevenueReport.
*Broadcast television advertising includes national network, syndication and spot TV.