U.S. DIGITAL AD REVENUES SURPASS $100 BILLION FOR FIRST TIME

Digital ad revenues surged into the triple digits for the first time in 2018, reaching $107.5 billion, up from $88 billion, or 22 percent, when compared to the previous year, according to the Interactive Advertising Bureau’s twice-yearly report, which was prepared by PwC.

TV Ad revenues only reached $71 billion for the year in comparison.

This marks the ninth consecutive year that digital advertising has seen double digit growth. This comes at no surprise as the number of people accessing the internet continues to slowly rise, as well as the amount of time people spend online.

 

Leaders of the pack

In 2016, mobile surpassed desktop for the first time since the IAB began tracking digital advertising revenues in 1996. The IAB now says that mobile captured nearly 65 percent, or $70 billion, in 2018, a 40 percent upswing from the previous year.

Social media, which the IAB describes as “advertising on delivered social platforms, including social networking and social gaming websites and apps,” grew to $29 billion, up nearly 31 percent when compared to the previous year. The IAB says story formats such as those on Instagram, Snapchat and the rise of direct-to-consumer brands fueled social’s growth.

Search advertising still continues to capture nearly half of all digital ad revenues, totaling $48.4 billion in 2018, up from roughly $40 billion when compared to the previous year.

 

Rising Star

Digital audio grew to $2.3 billion in 2018, up 23 percent from 2017. The IAB says that recent technological innovations, as well as a surge in podcast revenues, drove growth. Despite the increase, digital audio overall share of ad revenues remained flat at 2.1 percent, the IAB says.

“There are big players and it is a new space, but I think traditional publishers and radio stations will all have the ability to get in on it," says David Silverman, partner at PwC, when asked about the rise of streaming players like Spotify and Pandora in relation to terrestrial giants like iHeartMedia.

 

On Deck

Although the IAB did not include digital out-of-home in its most recent report, it’s likely only a matter of time until it does.

Historically, the IAB only includes new verticals in its report if they capture at least a 2 percent share of overall digital ad revenues. That means digital out-of-home would have needed to generate at least $2 billion to be included in this year’s report.

Out-of-home overall saw $10 billion in ad revenues, up 4 percent year-over-year. Recent technological advancements, such as the ability to buy OOH billboards programmatically, have contributed to the vertical’s overall growth.

Potential Roadblocks

We've mentioned the fact that internet browsers such as Apple's Safari, Mozilla's Firefox, and most recently Google's Chrome have all begun implementing cookie-blocking features. This will surely impact digital ad's growth in the coming years, as most companies currently utilize cookies to reach their consumers.

With that said, brands are able to negate any impact felt by regulation and a cookieless world through the use of AMG processes.

AMG strictly uses only first-party, offline data. The way we do advertising is 100% consumer driven, as we make no use of tracking, and therefore do not violate user’s privacy.

To find out more about what exactly it is that Adronitis does and what our revolutionary advertising technology is capable of, reach out to our team today.

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