History has been made! The 2013 internet ad revenue exceeds broadcast television for the first time in US history. The report was released by the Interactive Advertising Bureau, and is based on a survey lead by PwC U.S. The IAB consists of more than 600 leading media and technology companies. This report stated that Internet advertising revenue rose 17% to $42.8 billion.
Ad formats have expanded in the past couple of years from the traditional search and banner ads. Search continues to remain the victor among ad formats with revenue of $18.4 billion, but mobile has become the fastest growing. In 2013 mobile brought in 17% of the $42.8 billion. According to this report, the high internet revenue is mostly due to the sharp growth in mobile and digital video ads.
Internet Gains in 2013:
- Mobile Ads: $7.1 Billion, increase of 110%
- Digital Video: $2.8 Billion, increase of 19%
- Search: $18.4 Billion, increase of 9%
Internet advertising had a great year, however, it did not surpass the $74.5 billion in broadcast and cable ad sales combined. If the surge towards mobile continues to grow at this rate, the internet may become dominate over television in a few years. With most television shows available on the internet and the increasing popularity of social media, people are spending less time in front of the TV, and more time in front of a computer or phone.