IAB: Search Rises, With Mobile Contributing 54% To Revenue

Search generated $40.6 billion in 2017, and mobile contributed 54% to paid-search ad revenue. Those numbers -- released in the Internet Advertising Revenue Report by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) on Thursday -- show that digital advertising now surpasses television advertising in the U.S.

Overall, the analysis estimates marketers spent $88 billion in 2017 in digital -- of which mobile contributed about 57%. Television took $70.1 billon; magazines, $20.9 billion; radio, $17.6 billion; newspapers, $17 billion; and out of home, $9.6 billion.

Paid-search advertising, desktop and mobile rose about 18% year-on-year to nearly $41 billion in 2017. The percentage of digital ad revenue captured by search fell to 46.2%, from 47.7% in 2016.

Mobile also contributed to banner advertising. Banner advertising rose 23% to $27.5 billion, of which 67% came from mobile.



Digital video hit a record -- rising 33% to $11.9 billion in 2017. On mobile devices, video revenue rose 54% to $6.2 billion -- the first time that mobile video revenue surpassed desktop video.

Digital audio -- measured for the second time in a full-year report -- rose 39% to $1.6 billion from $1.1 billion in 2016. About 36% came from mobile audio ad revenue.

Social media advertising took $22.2 billion last year, rising 36% from the $16.3 billion in 2016. The report did not separate mobile from desktop growth in social.  

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