During the first 6 months of the year 2018, digital advertising revenues in the US reached a record $50 billion. This is the highest amount of money spent by advertisers on digital media during the first 6 months of a year. According to the most recent IAB Internet Advertising Revenue Report which was released by the Interactive Advertising Bureau (IAB) and produced by PwC US.
This dramatic rise was supported by the ongoing growth in mobile advertising and the fact that consumer brands that sell their products directly to buyers online have become more popular. This rise in popularity is partly due to the fact that more consumers are embracing new digital-first, direct-to-consumer (DTC) brands or product lines which sometimes are not found in-store, therefore, pushing more advertisers and retailers to get new clients via mobile. This expenditure represents a 23% increase from last year’s figure of $40.3 billion.
“This landmark figure cements digital advertising — whether display, search or mobile video — as one of the most powerful mechanisms of all time for brands to build relationships with consumers,” said IAB CEO Randall Rothenberg in a statement. “It’s a truth upon which direct-to-consumer brands have built their businesses, and from which all businesses can benefit.”
Brian Wieser, who is the Pivotal Research senior analyst, said US advertising is on track to reach $100 billion this year, and Europe is on pace to reach about $60 billion, even though this cannot be sustained eternally.
“Growth rates are remarkable, but highlight risks around digital media owners – and Facebook and Google in particular – saturating digital media budgets in years ahead,” Wieser wrote.
Mobile now makes up about two-thirds (63%) of the total digital ad revenue. About $30.9 billion was spent by advertisers on mobile media during the first 6 months of the year, a 42% rise from $21.8 billion over the same period last year.