Digital Ad Spend Reaches an All-Time High of $88 Billion in 2017

Total U.S. digital ad spend reached a record-setting $88 billion last year, according to the latest IAB Internet Advertising Revenue Report, released today by the Interactive Advertising Bureau (IAB), and prepared by PwC US.  This represents a 21 percent uptick over the previous year at $72.5 billion, and marks the first time in this report that digital ad revenues have overtaken television (broadcast and cable combined).

Mobile built on its momentum from 2016, when it first took more than half of total revenues—claiming an even bigger slice of the pie in 2017 at 57 percent. Spend on mobile rose from $36.6 billion in 2016 to $49.9 billion in 2017, marking a 36 percent increase year-over-year.

Other highlights from the report include:

•     Digital video hit a record $11.9 billion in 2017, a 33 percent year-over-year increase from $8.9 billion in 2016
•     On mobile devices, video revenue surged by 54 percent to $6.2 billion, representing the first time that mobile video revenues have surpassed desktop video
•     Social media advertising commanded $22.2 billion last year, rising 36 percent over $16.3 billion in 2016
•     Search revenues reached nearly $40.6 billion in 2017, up 18 percent from $34.6 billion in 2016
•     Banner advertising is up 23 percent to $27.5 billion, 67 percent of which is derived from mobile banners.
•     Digital audio, measured for the second time in a full-year report, is up 39 percent to $1.6 billion from $1.1 billion in 2016

“Consumers are increasingly spending a tremendous amount of time with interactive screens and content – from mobile to desktop and audio to OTT – and brands are in lockstep with a growing commitment to digital ad buys,” said Randall Rothenberg, CEO, IAB. “Mobile captured more than half of the total digital ad spend last year and we can easily expect that share to continue to climb. Video also saw significant growth. That is no surprise—especially after seeing buyers clamoring to get into last week’s NewFronts presentations in New York.”

“Smartphones and tablets have become indispensable tools in the hands of consumers, from the moment they wake up to right before they go to sleep,” said Anna Bager, Executive Vice President, Industry Initiatives, IAB. “A double digit uptick in spend on mobile video is testament to both the pull of mobile and consumer’s never-ending demand for sight, sound, and motion—even while on-the-go. In addition, brands are embracing digital audio at a fast clip, recognizing the power of this burgeoning medium.”

“Digital advertising revenues have been steadily rising for several years and buyers continue to increase their investment,” said David Silverman, Partner, PwC US. “From mobile to video, consumers are constantly turning to digital, whether for information, entertainment, shopping, sharing, or more.”