U.S. Digital Ad Revenue Passes $100 Billion, Driven By Video, Mobile

For the first time, U.S. digital advertising revenues have passed $100 billion -- totaling $107.5 billion in 2018, according to the Interactive Advertising Bureau’s Internet Advertising Revenue Report, prepared in partnership with PwC. 

That marks a 22% increase from 2017, which saw digital ad revenues hit $88.3 billion. IAB CEO Randall Rothenberg said the figure was "a watershed moment for the digital advertising ecosystem."

That explosive growth was largely driven by digital video advertising, which grew 37% year-over-year to $16.3 billion, and mobile, which was up 40% year-over-year to $69.9 billion.



Overall, digital video represents about 15% of the total advertising pot.

Digital video on mobile devices now accounts for 63% of digital ad revenue, reaching $10.2 billion in 2018. Digital video is also helping to drive the mobile advertising business.

The report that found digital audio advertising -- such as advertising on podcasts and services like Spotify -- while comprising a small percentage of the overall pie, continues to grow at a rapid rate. Digital audio ads accounted for $2.3 billion in ad revenue last year, up 23% from the prior year.

The growth of digital ad revenue may speed up even further, driven by 5G technology, which began to roll out this year. Streaming audio, video and more interactive and engaging ad formats could be deployed far more easily with faster connection speeds.

"Advertisers are placing a premium on mobile and video, and in turn, the two are fueling the ongoing rise of digital marketing,” said Sue Hogan, senior vice president of research and measurement for the IAB.

“The 5G promise of lightning-fast speed and decreased latency presents opportunities for businesses and consumers alike. A smoother user experience, which could further consumer ease with use and frequency of ecommerce on small screens. It would allow for greater innovation in ad formats," she added.

Next story loading loading..