A new report from Interactive Advertising Bureau (IAB) shows that the online advertising business continues to grow at double-digit rates.
“This landmark figure cements digital advertising — whether display, search or mobile video — as one of the most powerful mechanisms of all time for brands to build relationships with consumers. It’s a truth upon which direct-to-consumer brands have built their businesses, and from which all businesses can benefit,” said Randall Rothenberg, president and CEO, IAB.
According to a report conducted by PricewaterhouseCoopers (PwC), digital ad revenue in the U.S. hit $49.5 billion in the first half of 2018, an increase of 23 percent year over year. In addition, mobile advertising accounted for 63 percent of the total, compared to 54 percent during the same period last year.
“We’re really looking at that as advertisers catching up to consumer behavior,” said Sue Hogan, the IAB’s senior vice president of research and measurement, according to reports.
PwC U.S. partner David Silverman added that a boost in mobile commerce and direct-to-consumer brands have also played a key role, giving digital advertisers “the ability to efficiently and effectively target consumers who are likely to be interested in a purchase, driving the cost of acquiring that customer down.”
“You can then plow that profit back into your business … the digital advertising market is helping to fuel that growth,” he said.
The report also found that video advertising is up 35 percent to $7 billion, with mobile video accounting for 60 percent of the total. Digital audio ad revenue has increased 31 percent to $935 million. And for the first half of 2018, social media revenue (which is considered advertising delivered on social platforms, including social networking and social gaming websites and apps) generated $13.1 billion. Year over year, social media revenue was up 37.5 percent from HY 2017, and it continues its half-year growth trends — increases are reflected in the 48.2 percent CAGR from 2012 to 2018.