Video Drives Ad Revenues Up 65% in the US

Mobile makes 65% of US ad revenue as of last year - $68.9 billion making a 40% increase from 2017’s records according to IAB.
In 2018, the total digital ad revenues were more than $100 billion getting to $107.5 billion for the first time.

‘Exceeding $100 billion in yearly revenue is a noteworthy moment for the advertising ecosystem – one that thrives on the ability to form direct relationships between customers and brands,’ said the CEO of IAB, Randall Rothenberg. ‘Innovative platforms like virtual reality, over-the-top television, augmented reality, and podcasts can thrust marketers ahead toward stronger connections with their audiences as brands work to create a ‘consumer-first’ market.’

Mobile ad platforms saw a steady growth which created CAGR of 54% in the last half a decade. Mobile revenues have led to the growth of single-click eCommerce, social media placements, and creative ad formats.

Digital video ads had the most substantial growth last year. Revenues from search increased by 19.2% from the previous year while digital video grew by nearly double that amount. Banner ads increased by 21.9%.

On mobile devices, the video reached $10.2 billion, making for a 65% increase from 2017. Meanwhile, ad revenues from digital video contributed 63% of all ad revenues in digital video.

Audio advertising was found to get to $2.3 billion, a 23% growth which compares to social media’s by six percentage points.

‘Advertisers are moving toward video and mobile, and the two are behind the growth in digital marketing,’ said the senior VP of measurement and research at IAB, Sue Hogan. ‘The 5G promise of fast speeds and low latency opens opportunities for consumers and businesses – a smoother experience for the user, which could attract more consumer use and increase the frequency of e-commerce on smartphones. Consequently, businesses would be able to innovate ad formats. While companies prepare for 5G, we can expect more digital growth.’

http://www.businessofapps.com/news/video-continues-to-drive-us-mobile-ad-revenues-up-65/

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