Mobile advertising now accounts for 51% of digital advertising in the US. According to the latest IAB Internet Advertising Revenue Report, overall digital ad expenditure in the US hit $72.5 billion in 2016, up 22% from $59.6 billion in 2015.
In the meantime, mobile grew 77% from $20.7 billion in 2015 to reach $36.6 billion last year.
Digital video has also seen some remarkable growth in 2016, hitting a whopping $9.1 billion, a jump of 53% from the $5.9 billion in 2015.
Perhaps even more impressively, mobile video advertising revenue grew 145% during the same period to $4.2 billion.
David Doty, Executive VP and Chief Marketing Officer at the IAB, explained:
“In a mobile world, it is no surprise that mobile ad revenues now take more than half of the digital market share. Digital video’s powerful ability to attract engaged audiences is naturally attracting greater investments.”
Social media meanwhile drove $16.3 billion in 2016 which marks a 50% rise in ad spend from the previous year ($10.9 billion).
Search revenues were also up, increasing 19% to $35 billion in 2016.
For the very first time, the report also measured digital audio, which generated $1.1 billion in 2016.
David Silverman, Partner at professional services network PwC US, says:
“Mobile, social, video and programmatic trends combine to redefine the digital landscape, providing unprecedented access for advertisers to reach consumers. Digital audio […] speaks to the continued evolution of new formats that enable marketers to find audiences at home, behind their desks or wherever they are.”
Perhaps unsurprisingly, the biggest spenders in digital are retailers, representing 21.3% of US ad spend, followed by financial services at 13.3% and automotive (12.5%) as well as media industries (5.2%).
Overall, the year finished on a high with Q4 revenues up 24% from Q4 2015. Mobile took its largest share during the final quarter of the year at 53%.
Randall Rothenberg, President and CEO, IAB, explains:
“Mobile fueled the internet economy in 2016, with advertisers showing their confidence in digital to achieve their marketing goals. This increasing commitment is a reflection of brands’ ongoing marketing shift from ‘mobile-first’ to ‘mobile-only’ in order to keep pace with today’s on-the-go consumers.”