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BizReport : Advertising : April 14, 2014


Internet ad revenues outstrip broadcast TV for the first time

Marketers are now spending more to advertise online than they are on broadcast television, according to new figures released by the Interactive Advertising Bureau.

by Helen Leggatt

In 2013, a record $42.8 billion in online advertising revenue was recorded - a 17% year on year increase. In comparison, revenue generated from advertising on broadcast television (national network, syndication and spot TV) was less - $40.1 billion in 2013.

However, total television revenues - broadcast plus cable - still dominate with $66 billion in 2013.

Meanwhile, revenue from mobile advertising more than doubled rising 110% from $3.4 billion in 2012 to $7.1 billion last year and accounting for 17% of 2013 revenues

David Silverman, partner at PriceWaterhouseCoopers who conducted the research for the IAB, observes that "we are fully in transition to the post-desktop era. Triple-digit advertising revenue growth from mobile devices contrasted the more tepid 8% growth from traditional computer screens".

Other key findings of the ad revenue report include:

- Search revenues for 2013 totaled $18.4 billion, up 9% year on year;

- Display advertising revenues in 2013 reached $12.8 billion, up 7% year on year;

- Retail advertisers comprise the largest Internet spending category driving 21% in 2013 followed by financial services (13%) and automotive (12%);

- Mobile achieved triple-digit growth for the third year in a row rising to $7.1 billion in 2013 - a 110% year on year rise.

iab.gifAccording to Randall Rothenberg, IAB presidents and CEO, the fact that broadcast television had been outperformed by digital should not surprise anyone.

"It speaks to the power that digital screens have in reaching and engaging audiences," he said. "In that same vein, the staggering growth of mobile is clearly a direct response to how smaller digital screens play an integral role in consumers' lives throughout the day, as well as their critical importance to cross-screen experiences."

Image via Shutterstock

Tags: advertising, digital, mobile, revenue, television










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