IAB report shows Internet ad revenue rose to $42.8 billion in 2013, another record

The Interactive Advertising Bureau (IAB) issued its report for annual Internet ad revenue for 2013, which the organization says was another record year. The IAB said ad revenue hit $42.8 billion, exceeding broadcast television advertising revenue for the first time.

“The news that interactive has outperformed broadcast television should come as no surprise,” Randall Rothenberg, President and CE of the IAB, said in the reports press release. “It speaks to the power that digital screens have in reaching and engaging audiences. In that same vein, the staggering growth of mobile is clearly a direct response to how smaller digital screens play an integral role in consumers’ lives throughout the day, as well as their critical importance to cross-screen experiences.”

The report was prepared by PwC U.S.


2013 was the third year in a row that mobile advertising enjoyed triple digit growth, increasing to $7.1 bill in 2013. Mobile advertising accounted for 17 percent of revenue in 2013, where mobile accounted for 9 percent the prior year.

IAB-Q4-chartIn Q4 of last year, mobile’s share of all Internet ad revenue reached 19 percent, while search fell to 41 percent from 44 percent, but is still the largest single category for Internet advertising.

“Our survey confirms that we are fully in transition to the post-desktop era,” said David Silverman, Partner, PwC U.S. “Triple digit advertising revenue growth from mobile devices contrasted the more tepid 8 percent growth from traditional computer screens.”

With web advertising, even depressed categories continue to show growth. For instance, classified advertising online rose to $2.6 billion in 2013, a 7 percent increase over 2012.

Retail advertisers still represent the largest category of Internet ad spends, accounting for 21 percent of total revenues. Financial services represented 13 percent, and automotive came in at 12 percent of revenues. These percentages were pretty much unchanged from 2012.

Because search still dominates Internet advertising, despite its slight fall in percentage of the total, performance based advertising continues to represent the lion’s share of advertising at 65 percent, down only 1 percent from 2012. CPM-based pricing showed a slight uptick to 33 percent of revenues in 2013.

A PDF copy of the report is available on the IAB website.

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