Online Ad Spend Achieved Substantial Growth Last Year

June 13, 2018
Samantha Brachat

For the first time, digital ad revenue has exceeded the amount spent on broadcast and cable television.

Reaching a New Pinnacle

New findings released by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) revealed that digital advertising spend reached new heights last year, growing 21% year-over-year and totalling $88 billion in 2017.

This follows a series of consecutive years of growth for digital, and the first time in history that digital spend has dethroned television as the top source of advertising revenue.

A significant portion of this growth has been attributed to both new advertisers and an increasing demand in leveraging digital’s ability to reach users anywhere and on any device, as opposed to the limitations of traditional mediums

“It’s about giving the user what he wants, when he wants it, on whatever platform he may be on,” said Anna Bager, the IAB’s executive vice president for industry initiatives.

 

Breakdown by Channel

Online video consumption had a whopping 33% increase, going from $8.9 billion in spend in 2016 to $11.9 billion last year. Search saw its revenue increase by 17.5%, reaching $40.6 billion despite its total market share slightly dropping. Digital banners, sponsorships and other forms of rich media had a leap of 23%, totalling $27.5 billion.

Mobile achieved tremendous growth as well, rising 36% year-over-year to nearly $50 billion, and taking up 57% of overall digital ad revenue in the United States. To put that into perspective, that’s more than all digital advertising revenue generated in 2014.

Social media advertising also had a significant increase. With Facebook as the primary contributor, advertising revenue expanded to $22.2 billion, a 36% increase from the $16.3 billion that was generated in 2016.

Audio ads also demonstrated extraordinary growth, achieving a 39% improvement year-over-year and a total of $1.6 billion in revenue. This increase comes as companies like Spotify, Amazon, Apple Music, and Google all compete to test new advertising options with their respective listeners.

 

A Bigger Piece of the Pie

As revenue continues to expand in the digital realm and brands shift their focus away from the limitations of traditional mediums, advertisers should expect even more opportunities to capitalize on campaign profit.

Mobile in particular continues to demonstrate its ability to continuously capture larger quarterly budgets and market share. 2018 truly seems to be the year where brands and marketers need to go mobile or go home.

Whether its search, display, social or mobile, Moresby Media has some excellent offers to start taking advantage of. For more information on our highest converting initiatives, reach out to your account manager today!

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