Advertisers spent an all-time high $36.6 billion to promote their wares to mobile device users in the U.S. last year. That marks the first time mobile advertising revenue represented more than half (50.4%) of the U.S. annual digital advertising spending, the Interactive Advertising Bureau (IAB) highlights in a new market research report.
IAB pegs the nationwide total digital ad spending for 2016 at $72.5 billion, up 22 percent year-over-year from 2015’s $59.6 billion. Mobile ad spending soared 77 percent higher year to year.
Digital video ad spending set a new record-high as well, surging 53 percent higher to total $9.1 billion. Mobile video ad spending played a big part, soaring 145 percent year-to-year to approach $4.2 billion. LINK:
Mobile Advertising Revenue
IAB considers the latest data as a landmark, both in terms of mobile and overall digital advertising spending. The data certainly emphasize ongoing rapid growth of mobile device usage and network traffic, and much more to come, given industry efforts to accelerate development and commercialization of a new generation of ultra-fast, gigabit broadband networks, multimedia content delivery platforms and consumer computing-communications devices and equipment.
Produced by PwC for IAB, other report highlights include:
- Social media advertising generated $16.3 billion last year, climbing 50 percent over 2015’s $10.9 billion
- Search revenues reached nearly $35 billion in 2016, up 19 percent from $29.5 billion in 2015
- Digital audio, measured for the first time in this report, brought in revenues of $1.1 billion in 2016
- Retail, representing 21.3 percent of the internet ad spend in 2016, Financial Services at 13.3 percent, and automotive at 12.5 percent, continue to have the largest category share, with Media (5.2%) picking up speed, up 13 percent over 2015
“Mobile, social, video, and programmatic trends combine to redefine the digital landscape, providing unprecedented access for advertisers to reach consumers,” commented PwC-US partner David Silverman. “Digital audio, generating $1.1 billion in 2016 speaks to the continued evolution of new formats that enable marketers to find audiences at home, behind their desks, or wherever they are.”
The latest market data shouldn’t come as a surprise, added EVP David Doty. “Digital video’s powerful ability to attract engaged audiences is naturally attracting greater investments. Next week’s NewFronts presentations will showcase the latest in original digital video content, certain to spark even greater interest from marketers and media buyers.”