Randall Rothenberg, President and CEO, IAB says “The news that interactive has outperformed broadcast television… speaks to the power that digital screens have in reaching and engaging audiences… triple-digit growth of mobile is clearly a direct response to how smaller digital screens play an integral role in consumers' lives… as well as their critical importance to cross-screen experiences...”
A new study by the IAB, with Price Waterhouse Coopers, wraps up the 2013 full year Internet advertising results report, noting that Internet advertising revenues in the United States totaled $42.8 billion for the full year of 2013, with Q4 2013 accounting for approximately $12.1 billion and Q3 2013 accounting for approximately $10.6 billion. Revenues for the full year of 2013 increased 17% over 2012. Mobile advertising in the United States totaled $7.1 billion during FY 2013, a 110% increase from the prior year total of $3.4 billion.
David Silverman, Partner, PwC, concludes that “… (the) survey confirms that we are fully in transition to the post-desktop era… triple-digit advertising revenue growth from mobile devices contrasted the… (only) 8% growth from traditional computer screens… the change in how and where consumers are viewing their information -- on the go!”
2013 annual revenues increased on a year-over-year percentage and dollar basis. The compound annual growth rate (CAGR) over the past ten years for internet advertising of 18% has outpaced U.S. current dollar GDP growth of 4% over that period. Since 2010, Internet advertising growth was fueled by a 123% CAGR in Mobile (compared to 12% growth in non-Mobile revenue).
Annual Ad Revenue ($ Billions) | |||
Year | Total Revenue | Non-Mobile Revenue | Mobile Revenue |
2009 | $22.7 | $22.7 | $- |
2010 | 26.0 | 25.4 | 0.6 |
2011 | 31.7 | 30.1 | 1.6 |
2012 | 36.6 | 33.2 | 3.4 |
2013 | 42.8 | 35.7 | 7.1 |
Source: IAB/PwC, April 2014 |
Second-half revenues totaled $22.7 billion in 2013, an increase of $3.2 billion from second-half revenues of 2012, which totaled $19.5 billion. Second-half revenues in 2013 represented 53% of total revenues in 2013, consistent with numbers reported in 2012 and consistent with the broader trend of higher revenues in the second-half of each year.
Revenues by Half Year | ||
Year | 1st Half | 2nd Half |
2009 | $10.9 | $11.8 |
2010 | 12.1 | 13.9 |
2011 | 14.9 | 16.8 |
2012 | 17.0 | 19.5 |
2013 | 20.1 | 22.7 |
Source: IAB/PwC, April 2014 |
Online advertising continues to remain concentrated with the 10 leading ad-selling companies, which accounted for 71% of total revenues in Q4 2013, down slightly from the 72% reported in Q4 2012. Companies ranked 11th to 25th accounted for 10% of revenues in Q4 2013, consistent with the 10% reported in Q4 2012.
Search continues to lead ad formats; Digital video increases share to become fourth largest format; Ad format – full year 2013 results
Historical format trends; Search retains largest share of revenue, while Mobile grows fastest
Ad revenues by industry category; Retail drives advertising, as dollars shift to digital (vs.2012)
Advertising market share by media; Internet advertising surpassed Broadcast Television advertising revenue in 2013
Internet has continued to grow in share and significance and now represents 57% of all Television (Broadcast and Cable) advertising.
Advertising Revenue Market Share By Media (2013, $ billions) | |
Medium | Revenue Market Share 2013 ($B) |
Internet | $42.8 |
Broadcast TV | 40.1 |
Cable TV | 34.4 |
Newspaper | 18.0 |
Radio | 16.7 |
Magazine (consumer) | 13.5 |
Out of Home | 7.9 |
Video game | 0.9 |
Cinema | 0.8 |
Source: IAB/PwC, April 2014 |
For additional information, please visit IAB here.