Digital ad revenues hit landmark high: report

Marketers are gaining confidence that mobile advertising is effective, according to research from the IAB.
October 21, 2014

Internet ad revenues climbed to an historic half-year high of $23.1 billion, according to the IAB Internet Advertising Revenue Report released Monday.

This marks a 15% increase over 2013’s first-half ad revenues of $20.1 billion, according to the report by the Interactive Advertising Bureau and PwC US. Mobile revenues, in particular, jumped 76% to $5.3 billion — overtaking banner ads.

Digital video, a component of display-related advertising, reached $1.5 billion, a 13% increase in revenue over the first half of 2013.

The results show marketers are gaining confidence that mobile advertising is effective, and reaching customers on their mobiles is a growing part of media planning, said Joe Laszlo, senior director of the IAB’s Mobile Marketing Center of Excellence, via email.

And, with second-half revenues traditionally surpassing those in the first half of the year, there’s potential of even stronger digital ad revenues to come.

“The continued growth of the U.S. mobile audience, combined with the shift from feature phones to smartphones, definitely helps fuel the growth of mobile advertising,” said Laszlo.

“Marketers know they need to place messages where their customers are and the fact that mobile ads can now be larger and more attractive makes brands more willing to shift some of their media budgets to mobile.”

Social media revenues, which include advertising delivered on social platforms such as social networking and gaming websites and apps, reached $2.9 billion during the first half of this year, a double-digital hike of 58% over the same period last year.

The survey includes data about online advertising revenues from web sites, commercial online services, free email providers and other companies selling online advertising.

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