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State of the Screens

Digital Ad Spend Stronger Than Ever

By April 15, 2021No Comments

Digital ad spend (YoY growth) according to IAB/PwC:
1) 2011 – $31.7B (↑ 22%)
2) 2012 – $36.6B (↑ 15%)
3) 2013 – $42.8B (↑ 17%)
4) 2014 – $49.5B (↑ 16%)
5) 2015 – $59.6B (↑ 20%)
6) 2016 – $72.6B (↑ 22%)
7) 2017 – $88.3B (↑ 22%)
8) 2018 – $107.5B (↑ 22%)
9) 2019 – $124.6B (↑ 16%)
10) 2020 – $139.8B (↑ 12%)

Big Question: How did the pandemic impact digital ad spend growth?

Quick answer: Quarterly growth declined in 2020-Q2 (↓ 5%) for the first time since 2009-Q3 (↓ 6%), but 2020-Q4 more than made up for it with 29% growth.

Digital ad spend YoY growth by quarter:
1) 2020-Q1 – ↑ 10%
2) 2020-Q2 – ↓ 5%
3) 2020-Q3 – ↑ 12%
4) 2020-Q4 – ↑ 29%

2019 vs 2020 quarterly advertising revenues

Share of spend by ad format:
1) Search – 42%
2) Display – 32%
3) Video – 19%
4) Other – 7%

Digital video ad spend (YoY growth):
1) 2017 – $11.9B
2) 2018 – $16.2B (↑ 36%)
3) 2019 – $21.7B (↑ 34%)
4) 2020 – $26.2B (↑ 21%)

Mobile share of digital video (non-CTV) ad spend:
1) 2018 – 63%
2) 2019 – 68%
3) 2020 – 70%

Digital ad spend YoY growth by format:
1) Video – ↑ 21%
2) Non-video – ↑ 10%

Video: 2020/2021 Annual Internet Ad Revenue Report Webinar

PwC IAB Internet Ad Revenue Report Webinar

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.