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State of the Screens

IAB: Digital Ad Revenue on Pace For $85bn in (Another) Record-Breaking Year

By January 6, 2018No Comments

Digital advertising (U.S. only) is on pace to hit $85B in 2017.

Digital ad spend comparison (% growth):
1) 1H-2016: $33B
2) 1H-2017: $40B (↑ 23%)

Mobile share of digital spend continues to skyrocket:
1) 1H-2012: 7%
2) 1H-2013: 14%
3) 1H-2014: 23%
4) 1H-2015: 30%
5) 1H-2016: 47%
6) 1H-2017: 54%

76% of the 9M local businesses (7M) are now buying digital advertising.

Digital video ad spend comparison (% growth):
1) 1H-2016: $3.8B
2) 1H-2017: $5.2B (↑ 37%)

Quote from David Silverman — Partner @ PwC:
“We should no longer think of the internet as mobile vs desktop, advertisers are simply following consumers, who live their lives online — whether on a smartphone during a commute, on a desktop at work, or on a tablet for entertainment in the evening. Digital is an intrinsic part of every American’s day.”

Share of spend by ad format:
1) Search: 47%
2) Banner: 31%
3) Video: 13%
4) Other: 9%

CPMs are increasing (% growth):
1) Banner: $15 (↑ 6%)
2) Video: $24 (↑ 5%)

Mobile ad prices are projected to rise 45% between 2017 and 2018!

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.