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2013 Internet Ad Revenues Soar To $42.8 Billion
April 14, 2014 at 4:37 AM (PT)
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U.S. interactive advertising revenues for 2013 hit an all-time high of $42.8 billion, according to the IAB INTERNET ADVERTISING Revenue Report for the full-year, exceeding broadcast television advertising revenues ($40.1 billion) for the first time ever -- while remaining in front of radio and newspapers. This figure marks an increase of 17% from 2012’s revenues of $36.6 billion. The report by the IAB and prepared by PWC U.S., also reveals that fourth-quarter revenues for 2013 came in at $12.1 billion, an increase of 17% from the $10.3 billion brought in during the same quarter in 2012. In addition, this total represents an uptick of 14% from 2013’s third-quarter revenues at $10.6 billion.
Other highlights include:
- For the third year in a row, mobile achieved triple-digit growth year-over-year, rising to $7.1 billion during full year 2013, a 110% boost from the prior year total of $3.4 billion. Mobile accounted for 17% of 2013 revenues, whereas it was 9% of revenues in 2012.
- Digital video, a component of display-related advertising, brought in $2.8 billion in full year 2013, up 19% over revenues of $2.3 billion in 2012. As a result, it also increased its share to become the fourth largest format, directly behind mobile.
- Search revenues totaled $18.4 billion in 2013, up 9% from 2012, when search totaled $16.9 billion.
- Display-related advertising revenues in 2013 totaled $12.8 billion or 30% of the year’s revenues, a rise of 7% over $12 billion in 2012.
- Retail advertisers continue to represent the largest category of Internet ad spending, responsible for 21% in 2013, followed by financial services and closely trailed by automotive which account for 13 and 12% of the year’s revenues respectively.
“The news that interactive has outperformed broadcast television should come as no surprise,” said IAB Pres./CEO RANDALL ROTHENBERG. “It speaks to the power that digital screens have in reaching and engaging audiences. In that same vein, the staggering growth of mobile is clearly a direct response to how smaller digital screens play an integral role in consumers' lives throughout the day, as well as their critical importance to cross-screen experiences.”
“Our survey confirms that we are fully in transition to the post-desktop era,” said PWC U.S Partner DAVID SILVERMAN. “Triple digit advertising revenue growth from mobile devices contrasted the more tepid 8% growth from traditional computer screens. This is simply a reflection of the change in how and where consumers are viewing their information -- on the go!”

