Digital ad spend surpasses $100 billion for the first time in the US

The U.S. digital advertising revenues in 2018 reached an all-time historic high of $107.5 billion. This is the first time the ad spend exceeds the $100 billion mark. The numbers are from the latest IAB Internet Advertising Revenue Report released by IAB and prepared by PwC US. 2018 had a growth of 22 percent year-over-year. The ad spend in 2017 was $88.3 billion.

“Surpassing $100 billion in annual revenue is a watershed moment for the digital advertising ecosystem—one built on its power to build direct relationships between brands and today’s consumers,” said Randall Rothenberg, CEO, IAB. “Innovative platforms like over-the-top television, podcasts, virtual reality, and augmented reality all have the potential to help marketers forge even stronger ties with audiences, as brands navigate the new ‘consumer-first’ playing field.”

According to IAB, mobile and video continue to lead digital marketing’s steady growth.

Accounting for nearly two-thirds (65%) of 2018’s internet ad revenues, mobile reached $69.9 billion, up 40 percent from the previous year at $50.1 billion.

Advertising revenues from digital video saw the largest rise among all formats—an uptick of 37 percent—catapulting to $16.3 billion in 2018 from $11.9 billion in 2017.

Digital audio advertising grew 23% to reach $2.3 billion, outpacing last year’s full-year revenue of $1.8 billion.