The Internet Advertising Bureau (IAB) released a report last week that revealed 2013 internet advertising revenues in the U.S.; and for the first time in history, internet ad spend exceeded broadcast television ad spend. Internet revenues came in at $42.8 billion – a 17% increase from $36.6 billion in 2012 – and television at $40.1 billion.
“The news that interactive has outperformed broadcast television should come as no surprise,” said Randall Rothenberg, President and CEO, IAB. “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.”
The IAB sponsored report is released twice annually to reveal half-year and full-year data. It is conducted independently by the New Media Group of PwC and is considered to be the “most accurate measurement of Internet/online advertising revenues,” according to the IAB website. The data is collected directly from companies selling online advertising, including web sites, commercial online services, email marketers and other companies that sell online advertising. Television advertising revenues are compiled from national networks, syndication and spot TV.
Notable figures within the report also include a 110 percent growth for mobile ad spending, rising from $3.4 billion in 2012 to $7.1 billion in 2013, a 19 percent increase in digital video advertising spending, a nine-percent increase in search revenues, and a seven-percent increase in display-related advertising. Retail advertisers remain the largest category of digital ad spenders, responsible for 21 percent of the year’s revenues in 2013 trailed by financial services with 13 percent and automotive with 12 percent.
“Our survey confirms that we are fully in transition to the post-desktop era,” said David Silverman, Partner, PwC U.S. “Triple digit advertising revenue growth from mobile devices contrasted the more tepid 8 percent 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!”
View the full report here.