2013 Internet Ad Revenues Soar To $42.8 Billion

U.S. interactive advertising revenues for 2013 hit an all-time high of $42.8 billion, according to the IAB Internet Advertising Revenue Report for the full-year, exceeding broadcast television advertising* revenues ($40.1 billion), for the first time ever. This momentous figure marks an increase of 17 percent from 2012’s landmark revenues of $36.6 billion. The report, unveiled today by the Interactive Advertising Bureau (IAB) and prepared by PwC U.S., also reveals that fourth quarter revenues for 2013 came in at $12.1 billion, an increase of 17 percent from the $10.3 billion brought in during the same quarter in 2012. In addition, this total represents an uptick of 14 percent from 2013’s third quarter revenues at $10.6 billion.

Other highlights include:

•     For the third year in a row, mobile achieved triple-digit growth year-over-year, rising to $7.1 billion during full year 2013, a 110 percent boost from the prior year total of $3.4 billion. Mobile accounted for 17 percent of 2013 revenues, whereas it was 9 percent of revenues in 2012.
•     Digital video, a component of display-related advertising, brought in $2.8 billion in full year 2013, up 19 percent over revenues of $2.3 billion in 2012. As a result, it also increased its share to become the fourth largest format, directly behind mobile.
•     Search revenues totaled $18.4 billion in 2013, up 9 percent from 2012, when search totaled $16.9 billion.
•     Display-related advertising revenues in 2013 totaled $12.8 billion or 30 percent of the year’s revenues, a rise of 7 percent over $12 billion in 2012.
•     Retail advertisers continue to represent the largest category of internet ad spending, responsible for 21 percent in 2013, followed by financial services and closely trailed by automotive which account for 13 and 12 percent of the year’s revenues respectively.

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

“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, Senior Vice President, Research, Analytics, and Measurement, IAB.

To download full report CLICK HERE.