Digital Ad Spend Increases 23% Year-over-Year in First Half of 2017, Hitting Record-Breaking High of $40.1 Billion, According to IAB Internet Advertising Revenue Report

NEW YORK--(BUSINESS WIRE)--Interactive Advertising Bureau (IAB) announced today that digital advertising revenues in the United States for the first half of 2017 surged to an all-time high of $40.1 billion, according to the latest IAB Internet Advertising Revenue Report released by the industry trade group and prepared by PwC US. This represents a 23 percent year-over-year rise from the $32.7 billion reported during the same timeframe in 2016.

“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.”

Mobile captured 54 percent of total digital ad revenues—maintaining its status as the web’s leading ad format. Advertisers spent $21.7 billion on mobile during the first six months of 2017, a 40 percent increase from $15.5 billion in half-year 2016 and far surpassing the $8.2 billion reported just two years ago in HY 2015.

In an addendum to the report, IAB analysis shows that of the roughly 9 million small and medium-sized businesses in the U.S., 75 percent or more have spent money on advertising. Of these, 80 percent have used self-service platforms and 15 percent have leveraged programmatic advertising. These findings point to significant ad spend going to publishers with these capabilities, and presents a growth opportunity for those that can add self-service and programmatic geared to these businesses into the mix.

Other highlights from the report include:

• Total digital video, including mobile and desktop, rose to $5.2 billion in HY 2017, up 36% from $3.8 billion in HY 2016
• Video on mobile overtook video on display for the first time, with mobile video reaching $2.6 billion in HY 2017, compared with display video, which was just shy of that same figure
• Total social media advertising, including mobile and desktop, brought in revenues of $ $9.5 billion in HY 2017, a 37% upswing over $7 billion in HY 2016
• Total digital audio advertising, including mobile and desktop, generated $603 million in HY 2017, a 42% increase over HY 2016’s revenue of $425 million

“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.”

“We’ve seen digital marketing revenues climb steadily and this new analysis shows that there are more opportunities to be mined,” said Chris Kuist, Senior Vice President, Research and Impact, IAB. “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.”

“We should no longer think of the internet as mobile versus desktop,” said 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.”

Historical Half-Year Revenue Growth (in millions)

Comparison of Half-Year Revenue Growth (in millions)

Comparison of Revenue Models (in millions)

IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PwC. The results are considered a reasonable measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertising on the internet. The survey includes data concerning online advertising revenues from web sites, commercial online services, free email providers, and all other companies selling online advertising.

The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first and third quarters. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information. The current report and addendum, and past reports are available at www.iab.com/adrevenuereport.

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About IAB

The Interactive Advertising Bureau (IAB) empowers the media and marketing industries to thrive in the digital economy. It is comprised of more than 650 leading media and technology companies that are responsible for selling, delivering, and optimizing digital advertising or marketing campaigns. Together, they account for 86 percent of online advertising in the United States. Working with its member companies, the IAB develops technical standards and best practices and fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. The organization is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the IAB advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, the IAB is headquartered in New York City and has a West Coast office in San Francisco.