U.S. Internet Ad Revenues Reach Record-Breaking $49.5 Billion In 2014
April 23, 2015 at 4:56 AM (PT)
Digital advertising revenues in the U.S. rose to an all-time high of $49.5 billion in 2014, according to the IAB INTERNET ADVERTISING Revenue Report for the full-year, released TODAY (4/23) by the INTERACTIVE ADVERTISING BUREAU (IAB) and prepared by PwC US. This figure represents a 16% increase over 2013’s record-setting total of $42.8 billion -- and marks the fifth consecutive year of double-digit growth for the industry. The report additionally shows that 2014’s fourth quarter numbers reached $14.2 billion, a 17% uptick from $12.1 billion in the final quarter of 2014.
Other highlights include:
- Mobile advertising in the UNITED STATES brought in $12.5 billion during FY 2014, a 76% boost from the prior year total of $7.1 billion. As a result, it is the second largest format, accounting for 25% of FY 2014 revenues, a rise over 2013, when it accounted for 17% of that year’s total.
- Digital video, a component of display-related advertising, totaled $3.3 billion in full year 2014, a 17% increase over revenues of $2.8 billion in 2013.
- Social media advertising saw stellar returns, bringing in $7 billion in 2014, up by 57% over 2013’s total of $4.5 billion.
- Search revenues totaled $19 billion in 2014, up 3% from 2013, when search totaled $18.4 billion.
- Display-related advertising revenues in 2014 totaled $13.5 billion or 27% of the year’s revenues, an uptick of 5% over $12.8 billion in 2013.
- Retail advertisers continue to represent the largest category of internet ad spending, responsible for 21% in 2014, followed by financial services and closely trailed by automotive which account for 13 and 12% of the year’s revenues respectively, and identical to their percentages in full year 2013.
“Marketers clearly recognize that consumers are leading mobile-first lives and are investing their ad dollars accordingly,” said IAB Pres./CEO RANDALL ROTHENBERG. “The news of digital video’s double-digit growth is also no surprise. Brands and agencies are clamoring to get into the upcoming Digital Content NewFronts, where they will experience the latest in storytelling in sight, sound and motion.”
“High double-digit growth in mobile advertising is a reflection of the continued shift in consumer behavior away from desktop and towards mobile devices,” said PwC US Partner DAVID SILVERMAN. “A prominent rise in social, a significant mobile activity, is driving growth in advertising revenue as consumers spend more time connected.”
“Interactive marketing has generated remarkable revenue growth, a testament to its power to reach today’s consumers with innovative formats at critical junctures in the path to purchase,” said IAB SVP/Research, Analytics, and Measurement SHERRILL MANE.