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U.S. Internet Ad Revenues Reach Record-Breaking $49.5B in 2014, a 16% Increase Over Landmark 2013 Numbers, Marking Fifth Year in a Row of Double-Digit Growth for the Industry

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U.S. Internet Ad Revenues Reach Record-Breaking $49.5 Billion in 2014, a 16% Increase Over Landmark 2013 Numbers, Marking Fifth Year in a Row of Double-Digit Growth for the Industry

Q4 2014 Surpasses $14 Billion, Rising 17% Over Same Time in 2013
Mobile Ad Revenues Hit $12.5 Billion in 2014, Representing a 76% Increase Year-Over-Year; Digital Video Up 17% to $3.3 Billion

NEW YORK, NY (April 22, 2015) — Digital advertising revenues in the U.S. rose to an all-time high of $49.5 billion in 2014, according to the IAB Internet Advertising Revenue Report for the full-year, released today by the Interactive Advertising Bureau (IAB) and prepared by PwC US. This figure represents a 16 percent increase over 2013’s record-setting total of $42.8 billion – and marks the fifth consecutive year of double-digit growth for the industry. The report additionally shows that 2014’s fourth quarter numbers reached $14.2 billion, a 17 percent uptick from $12.1 billion in the final quarter of 2014.

Other highlights include:

  • Mobile advertising in the United States brought in $12.5 billion during FY 2014, a 76 percent boost from the prior year total of $7.1 billion. As a result, it is the second largest format, accounting for 25 percent of FY 2014 revenues, a rise over 2013, when it accounted for 17 percent of that year’s total.
  • Digital video, a component of display-related advertising, totaled $3.3 billion in full year 2014, a 17 percent increase over revenues of $2.8 billion in 2013.
  • Social media advertising saw stellar returns, bringing in $7 billion in 2014, up by 57 percent over 2013’s total of $4.5 billion.
  • Search revenues totaled $19 billion in 2014, up 3 percent from 2013, when search totaled $18.4 billion.
  • Display-related advertising revenues in 2014 totaled $13.5 billion or 27 percent of the year’s revenues, an uptick of 5 percent over $12.8 billion in 2013.
  • Retail advertisers continue to represent the largest category of internet ad spending, responsible for 21 percent in 2014, followed by financial services and closely trailed by automotive which account for 13 and 12 percent of the year’s revenues respectively, and identical to their percentages in full year 2013.

“Marketers clearly recognize that consumers are leading mobile-first lives and are investing their ad dollars accordingly,” said Randall Rothenberg, President and CEO, IAB. “The news of digital video’s double-digit growth is also no surprise. Brands and agencies are clamoring to get into the upcoming Digital Content NewFronts, where they will experience the latest in storytelling in sight, sound and motion.”

“High double-digit growth in mobile advertising is a reflection of the continued shift in consumer behavior away from desktop and towards mobile devices,” said David Silverman, Partner, PwC US. “A prominent rise in social, a significant mobile activity, is driving growth in advertising revenue as consumers spend more time connected.”

“Interactive marketing has generated remarkable revenue growth, a testament to its power to reach today’s consumers with innovative formats at critical junctures in the path to purchase,” said Sherrill Mane, Senior Vice President, Research, Analytics, and Measurement, IAB.

Here are the results from the full year in comparison with last year’s numbers:

 

Full Year
2013

Full Year
2014

 

%

$

%

$

Revenue (Ad Formats)

 

 

 

 

Search

43%

$18,365

38%

$18,955

Classifieds and Directories

6%

$2,597

5%

$2,690

Lead Generation

4%

$1,749

4%

$1,866

E-mail*

0%

$165

 

n/a*

 

 

 

 

 

Mobile

17%

$7,084

25%

$12,453

 

 

 

 

 

Display-related

 

 

 

 

    - Digital Video Commercials

7%

$2,784

7%

$3,254

    - Ad banners / display ads

19%

$7,943

16%

$8,049

    - Sponsorships

2%

$766

2%

$774

    - Rich media

3%

$1,328

3%

$1,410

        Total display-related

30%

$12,821

27%

$13,487

 

 

 

 

 

Revenue (Pricing Models)

 

 

 

 

Impression-based

33%

$14,297

33%

$16,506

Performance-based

65%

$27,788

66%

$32,434

Hybrid

2%

$696

1%

$511

*This survey no longer captures Email as an advertising format (effective 2014).

IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PwC. The results are considered the most accurate measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertisements on the internet.

The survey includes data concerning online advertising revenues from Web sites, commercial online services, free email providers, and all other companies selling online advertising. The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first and third quarters. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information.

A copy of the full report is available at: www.iab.net/AdRevenueReport.

About the IAB
The Interactive Advertising Bureau (IAB) empowers the media and marketing industries to thrive in the digital economy. It is comprised of more than 650 leading media and technology companies that are responsible for selling, delivering, and optimizing digital advertising or marketing campaigns. Together, they account for 86 percent of online advertising in the United States. Working with its member companies, the IAB evaluates and recommends standards and practices and fields critical research on interactive advertising. The organization is committed to professional development, elevating the knowledge, skills, and expertise of individuals across the digital marketing industry. The IAB also educates marketers, agencies, media companies and the wider business community about the value of interactive advertising. Founded in 1996, the IAB is headquartered in New York City.

About PwC US 
PwC US helps organizations and individuals create the value they're looking for. We're a member of the PwC network of firms, which has firms in 157 countries with more than 195,000 people. We're committed to delivering quality in assurance, tax and advisory services. Find out more and tell us what matters to you by visiting us at www.pwc.com/US

© 2015 PricewaterhouseCoopers LLP, a Delaware limited liability partnership.All rights reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

IAB Media Contact
Laura Goldberg
347.683.1859
laura.goldberg@iab.net

PwC Media Contact
Steven Silber
646.471.4059
steven.g.silber@us.pwc.com




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