IAB: 2018 Digital Ad Revenues Topped $100 Billion For First Time

Revenue Report

The INTERNET ADVERTISING BUREAU's tally of U.S. digital advertising revenues for 2018 has been released, showing the total at $107.5 billion, a 22% increase from 2017 and the first time the total has exceeded the $100 billion mark. The IAB Internet Advertising Revenue Report, compiled by PwC US, also shows that digital audio advertising grew 23% to $2.3 billion, representing 2% of the total digital revenue pie.  Mobile and video remain the largest contributors, with search on mobile and desktop representing 45% of the total,  banner ads at 31%, and digital video ads making up 27% of the pie (and increasing 37%). As for desktop vs. mobile, the latter widened its lead, increasing from $50 billion to $70 billion and from 57% to 65% of the total revenue. And social media revenue rose 31% to $29 billion.

“Surpassing $100 billion in annual revenue is a watershed moment for the digital advertising ecosystem -- one built on its power to build direct relationships between brands and today’s consumers,” said IAB CEO RANDALL ROTHENBERG. “Innovative platforms like over-the-top television, podcasts, virtual reality, and augmented reality all have the potential to help marketers forge even stronger ties with audiences, as brands navigate the new ‘consumer first’ playing field.”

“Digital marketing has unequivocally secured the lead in media market share, just as it has taken the lead in consumer mindshare,” said IAB EVP of Industry Initiatives ANNA BAGER. “As audiences have shifted away from traditional media, digital has been a dominant force in capturing their attention -- first from desktop to mobile devices and more recently to connected TV, smart speakers, and digital out-of-home.”

“Advertisers are placing a premium on mobile and video, and in turn the two are fueling the ongoing rise of digital marketing,” said IAB SVP, Research and Measurement SUE HOGAN. “And 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; and it would allow for greater innovation in ad formats. As companies prepare for 5G -- and its rollout gains momentum -- we can anticipate even more healthy digital growth.”

“Year after year, brands have been increasing their commitment to digital as a primary channel to reach consumers,” said PwC US Partner DAVID SILVERMAN. “The analysis in this report highlights important drivers and trends that could influence interactive’s trajectory in the years to come, as marketers look to new formats and technologies to help them connect with consumers.”

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