Video continues to drive US mobile ad revenues – up 65%

Anne Freier

In Mobile Advertising. May 13, 2019

Mobile now accounts for 65% of US Internet ad revenue in 2018 ($69.9 billion), representing an increase of 40% from 2017, according to the latest report by the IAB and PwC US.

Overall, US digital ad revenues in 2018 exceeded $100 billion for the first time reaching $107.5 billion – an increase of 22% over 2017.

“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 Randall Rothenberg, CEO, IAB. “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.”

Strong growth for mobile ad platforms resulted in a CAGR of 54% over the last five years and mobile revenues have been driven by single-click eCommerce, creative ad formats and social media placements.

Digital video ads represented the ad format with the largest growth in 2018. Search revenues increase 19.2% from 2017, whilst digital video was up 37.2% and banner revenues jumped 21.9%.

Video on mobile devices reached $10.2 billion in spending, representing a 65% rise over 2017. Meanwhile, digital video ad revenues on mobile made up 63% of all digital video ad revenues, up 52% from 2017.

Audio advertising grew 23% to $2.3 billion and social media jumped 31% to $29 billion.

“Advertisers are placing a premium on mobile and video, and in turn the two are fueling the ongoing rise of digital marketing,” said Sue Hogan, Senior Vice President, Research and Measurement, IAB. “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.”