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State of the Screens

Digital Advertising Revenue Grew 21% and Surpassed TV Ad Spend Last Year

By May 23, 2018No Comments

Digital advertising (U.S. only):
1)
2016 — $72.5B
2)
2017 — $88.0B (↑ 21%)

Digital ad spend surpassed TV in 2017.

Remember. The numbers above include all digital ads (search, display, etc.). TV still accounts for 85% of video ad spend.

Still early: Video only makes up 14% of digital ad spend, but is growing rapidly.

Growth rate for digital video advertising:
1) 2016 — ↑ 51%
2) 2017 — ↑ 33%

Digital ad spend by format (% of total):
1)
Search — $40.6B (46%)
2) Banner — $27.5B (31%)
3) Video — $11.9B (14%)
4) Audio — $1.6B (2%)
5) Other — $6.4B (7%)

Quote from Anna Bager — EVP of Industry Initiatives @ IAB:
“I think there’s also massive content innovation that’s ongoing… Media companies and advertisers are starting to understand the consumption behavior and how different needs of media — long-form, short-form, sound, video, mobile, in-feed, out-feed — have changed as well.”

Full report: IAB Internet Advertising Revenue Report Conducted by PricewaterhouseCoopers (PWC)

Michael Beach

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.