April 22, 2015 Last Updated 10:22 am

Digital advertising reaches another record high in 2014, $49.5 billion according to the IAB

NEW YORK, NY – April 22, 2015 — Digital advertising revenues in the U.S. rose to an all-time high of $49.5 billion in 2014, according to the IAB Internet Advertising Revenue Report for the full-year, released today by the Interactive Advertising Bureau (IAB) and prepared by PwC US. This figure represents a 16 percent increase over 2013’s record-setting total of $42.8 billion – and marks the fifth consecutive year of double-digit growth for the industry. The report additionally shows that 2014’s fourth quarter numbers reached $14.2 billion, a 17 percent uptick from $12.1 billion in the final quarter of 2014.

new-iab-logo-100“The news of digital video’s double-digit growth is also no surprise. Brands and agencies are clamoring to get into the upcoming Digital Content NewFronts, where they will experience the latest in storytelling in sight, sound and motion.”

Other highlights include:

  • Mobile advertising in the United States brought in $12.5 billion during FY 2014, a 76 percent boost from the prior year total of $7.1 billion. As a result, it is the second largest format, accounting for 25 percent of FY 2014 revenues, a rise over 2013, when it accounted for 17 percent of that year’s total.
  • Digital video, a component of display-related advertising, totaled $3.3 billion in full year 2014, a 17 percent increase over revenues of $2.8 billion in 2013.
    Social media advertising saw stellar returns, bringing in $7 billion in 2014, up by 57 percent over 2013’s total of $4.5 billion.
  • Search revenues totaled $19 billion in 2014, up 3 percent from 2013, when search totaled $18.4 billion.
  • Display-related advertising revenues in 2014 totaled $13.5 billion or 27 percent of the year’s revenues, an uptick of 5 percent over $12.8 billion in 2013.
  • Retail advertisers continue to represent the largest category of internet ad spending, responsible for 21 percent in 2014, followed by financial services and closely trailed by automotive which account for 13 and 12 percent of the year’s revenues respectively, and identical to their percentages in full year 2013.

IAB_chart-1“Marketers clearly recognize that consumers are leading mobile-first lives and are investing their ad dollars accordingly,” said Randall Rothenberg, President and CEO, IAB. “The news of digital video’s double-digit growth is also no surprise. Brands and agencies are clamoring to get into the upcoming Digital Content NewFronts, where they will experience the latest in storytelling in sight, sound and motion.”

“High double-digit growth in mobile advertising is a reflection of the continued shift in consumer behavior away from desktop and towards mobile devices,” said David Silverman, Partner, PwC US. “A prominent rise in social, a significant mobile activity, is driving growth in advertising revenue as consumers spend more time connected.”

“Interactive marketing has generated remarkable revenue growth, a testament to its power to reach today’s consumers with innovative formats at critical junctures in the path to purchase,” said Sherrill Mane, Senior Vice President, Research, Analytics, and Measurement, IAB.

Here are the results from the full year in comparison with last year’s numbers:

IAB-internet-adv

IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PwC. The results are considered the most accurate measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertisements 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.

A copy of the full report will be available at: www.iab.net/AdRevenueReport.

Source: IAB

Comments are closed.