IAB: Online Ad Revenue Overtakes TV For First Time In U.S.

Chris CrumMarketing & Advertising

Share this Post

The Interactive Advertising Bureau (IAB) has released its latest Internet ad revenue report, conducted by PricewaterhouseCoopers. It finds that interactive ad revenues for 2013 hit an all-time high of $42.8 billion, exceeding broadcast TV advertising ($40.1 billion) for the first time ever. It saw a 17% increase from the previous year's $36.6 billion.

IAB CEO Randall Rothenberg said, “The news that interactive has outperformed broadcast television should come as no surprise. 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.”

Q4 revenues were $12.1 billion, up 17% from $10.3 billion in Q4 2012. This is also up14% from the previous quarter's $10.6 billion.

Mobile saw triple-digit-growth, hitting $7.1 billion for the year, and accounting for 17% of 2013 revenues. Digital video saw $2.8 billion for the year, up 19% from the previous year. Search revenues were $18.4 billion in 2013, up 9%. Display ad revenue for the year was $12.8 billion, up 7%.

“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. This is simply a reflection of the change in how and where consumers are viewing their information—on the go!”

“Digital marketing generates large reach and many possibilities to create impact across consumers’ purchase consideration processes, both critically important to advertisers as they seek marketing investments that have value ” said Sherrill Mane, SVP, Research, Analytics, and Measurement at the IAB.

You can find the full report here.

Image via the IAB

Chris Crum
Chris Crum has been a part of the WebProNews team and the iEntry Network of B2B Publications since 2003. Follow Chris on Twitter, on StumbleUpon, on Pinterest and/or on Google: +Chris Crum.