US digital advertising expenditure increased 21% during 2017 to $88 billion (from $72.5 billion in 2016), according to the latest research by the Interactive Advertising Bureau (IAB) in collaboration with PwC US. For the first time, digital ad revenues have also overtaken traditional TV ads.
Meanwhile, mobile ads continued their momentum from 2016 when it accounted for half of revenues. In 2017, the format grew to 57% of all digital ad spend. Expenditures increased from $36.6 billion in 2016 to $49.4 billion in 2017, representing a 36% increase the year over.
“Consumers are increasingly spending a tremendous amount of time with interactive screens and content – from mobile to desktop and audio to OTT – and brands are in lockstep with a growing commitment to digital ad buys,” explained Randall Rothenberg, CEO, IAB. “Mobile captured more than half of the total digital ad spend last year and we can easily expect that share to continue to climb. Video also saw significant growth. That is no surprise—especially after seeing buyers clamoring to get into last week’s NewFronts presentations in New York.”
The study also noted that digital video spend jumped 33% to $11.9 billion in 2017.
Mobile video revenue increased 54% to $6.2 billion – once again highlighting the formats rapid growth.
Meanwhile, social media ads accounted for $22.2 billion in 2017 – an increase of 36% since 2016.
Search revenues jumped 18% to $40.6 billion, whilst banner ads increased 23% to $27.5 billion. Mobile was responsible for a whopping 67% of banner ads.
“Smartphones and tablets have become indispensable tools in the hands of consumers, from the moment they wake up to right before they go to sleep,” said Anna Bager, Executive Vice President, Industry Initiatives, IAB. “A double digit uptick in spend on mobile video is testament to both the pull of mobile and consumer’s never-ending demand for sight, sound, and motion—even while on-the-go. In addition, brands are embracing digital audio at a fast clip, recognizing the power of this burgeoning medium.”