US digital ad spend increases 23% in H1 to USD 40 bln

News Broadband United States 21 DEC 2017
US digital ad spend increases 23% in H1 to USD 40 bln

Digital advertising revenues in the US for the first half surged 23 percent to an all-time high of USD 40.1 billion, according to the latest IAB Internet Advertising Revenue Report released by the industry trade group and prepared by PwC US. Mobile captured 54 percent of total digital ad revenues, maintaining its status as the web’s leading ad format. Advertisers spent USD 21.7 billion on mobile during the first six months, a 40 percent increase from USD 15.5 billion in half-year 2016 and far surpassing the USD 8.2 billion reported just two years ago in HY 2015.

In an addendum to the report, IAB analysis shows that of the roughly 9 million small and medium-sized businesses in the US, 75 percent or more have spent money on advertising.

Of these, 80 percent have used self-service platforms and 15 percent leveraged programmatic advertising. These findings point to significant ad spend going to publishers with these capabilities, and presents a growth opportunity for those that can add self-service and programmatic geared to these businesses into the mix.

Total digital video, including mobile and desktop, rose to USD 5.2 billion in HY 2017, up 36 percent from USD 3.8 billion in HY 2016. Video on mobile overtook video on display for the first time, with mobile video reaching USD 2.6 billion in HY 2017, compared with display video, which was just shy of that same figure. Total social media advertising, including mobile and desktop, brought in revenues of USD 9.5 billion in HY 2017, a 37 percent upswing over USD 7 billion in HY 2016.Total digital audio advertising, including mobile and desktop, generated USD 603 million in HY 2017, a 42 percent increase over HY 2016’s revenue of USD 425 million.

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