US interactive ad revenues for 2013 hit an all-time high of $42.8 billion, according to the IAB Internet Advertising Revenue Report for the full-year, exceeding broadcast television advertising revenues ($40.1 billion), for the first time ever. This figure marks an increase of 17% from 2012’s revenues of $36.6 billion.
The report, unveiled today by the Interactive Advertising Bureau and prepared by PwC U.S., also reveals that Q4 revenues for 2013 came in at $12.1 billion, an increase of 17% from the $10.3 billion brought in during the same quarter in 2012. In addition, this total represents an uptick of 14% from 2013’s third quarter revenues at $10.6 billion.
For the third year in a row, mobile achieved triple-digit growth year-over-year, rising to $7.1 billion during full year 2013, a 110% boost from the prior year total of $3.4 billion. Mobile accounted for 17% of 2013 revenues, whereas it was 9% of revenues in 2012.
Digital video, a component of display-related advertising, brought in $2.8 billion in full year 2013, up 19% over revenues of $2.3 billion in 2012. As a result, it also increased its share to become the fourth largest format, directly behind mobile.
Search revenues totaled $18.4 billion in 2013, up 9% from 2012, when search totaled $16.9 billion.
Display-related advertising revenues in 2013 totaled $12.8 billion or 30% of the year’s revenues, a rise of 7% over $12 billion in 2012.
Retail advertisers continue to represent the largest category of internet ad spending, responsible for 21% in 2013, followed by financial services and closely trailed by automotive which account for 13 and 12% of the year’s revenues respectively.
“The news that interactive has outperformed broadcast television should come as no surprise,” said Randall Rothenberg, President and CEO, IAB. “It speaks to the power that digital screens have in reaching and engaging audiences. 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.”
| Full Year 2012 |
Full Year 2013 |
|||||||||||||||
| % | $ | % | $ | |||||||||||||
| Revenue (Ad Formats) | ||||||||||||||||
| Search | 46% | $ | 16,916 | 43% | $ | 18,365 | ||||||||||
| Classifieds and Directories | 7% | $ | 2,430 | 6% | $ | 2,597 | ||||||||||
| Lead Generation | 5% | $ | 1,689 | 4% | $ | 1,749 | ||||||||||
| 0% | $ | 156 | 0% | $ | 165 | |||||||||||
| Mobile | 9% | $ | 3,370 | 17% | $ | 7,084 | ||||||||||
| Display-related | ||||||||||||||||
| -Digital Video Commercials | 6% | $ | 2,330 | 7% | $ | 2,784 | ||||||||||
| -Ad banners / display ads | 21% | $ | 7,721 | 19% | $ | 7,943 | ||||||||||
| -Sponsorships | 2% | $ | 845 | 2% | $ | 766 | ||||||||||
| -Rich media | 3% | $ | 1,113 | 3% | $ | 1,328 | ||||||||||
| Total display-related | 33% | $ | 12,009 | 30% | $ | 12,821 | ||||||||||
| Revenue (Pricing Models) | ||||||||||||||||
| Impression-based | 32% | $ | 11,709 | 33% | $ | 14,297 | ||||||||||
| Performance-based | 66% | $ | 24,093 | 65% | $ | 27,788 | ||||||||||
| Hybrid | 2% | $ | 768 | 2% | $ | 696 | ||||||||||
