Over half (54%) of US digital advertising expenditure attributed to mobile

Anne Freier | December 22, 2017

Mobile Advertising

Digital advertising revenue in the US increased to a whopping $40.1 billion for the first half of 2017, representing a 23% increase from 2016. That’s according to the Interactive Advertising Bureau (IAB) Advertising Revenue Report prepared by PwC US.
Over half (54%) of digital ad revenues were attributed to mobile resulting in a $21.7 billion expenditure. This represents a 40% growth from $15.5 billion in 2016, surpassing the $8.2 billion back in 2015.
The IAB analysis also found that 75% of US small and medium-sized businesses have previously spent money on advertising. Around 80% of them utilized self-service platforms whilst 15% have tapped into programmatic advertising.

“Being nimble and accessible are hallmarks of the new digital economy,” said Randall Rothenberg, CEO, IAB. “Now, anyone with a good idea and a credit card can capture the attention of their customers directly, and this in turn represents an enormous growth opportunity for both marketers and publishers alike to help make these connections.”

This signifies a significant share of ad spend going to publishers, but also highlights an area for growth – mainly self-service and programmatic channels.
In addition, the report notes that digital video, including mobile and desktop, increased to $5.2 billion during 2017, up 36% from $3.8 billion in 2016.

“We should no longer think of the internet as mobile versus desktop,” explained David Silverman, Partner, PwC US. “Advertisers are simply following consumers, who live their lives online – whether on a smartphone during a commute, on a desktop at work, or on a tablet for entertainment in the evening. Digital is an intrinsic part of every American’s day.”

Meanwhile, mobile video overtook display video for the first time to reach $2.6 billion compared to display video.
Social media advertising generated revenues of $9.5 billion during the half-year 2017, which represents an increase of 37% from the same period in 2016.
 Chris Kuist, Senior Vice President, Research and Impact, IAB, adds:

“We’ve seen digital marketing revenues climb steadily and this new analysis shows that there are more opportunities to be mined. Varied audiences and advertising approaches can appeal to a wide variety of marketers in different shapes and sizes, bringing more dollars into the ecosystem and increasing the health of the interactive marketplace for all.”

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