Dive Brief:
- The Q3 IAB Internet Advertising Revenue Report saw record-breaking U.S. digital advertising numbers at $15 billion, a notable 23% year-over-year boost and 5% lift over Q2 this year.
- Randall Rothenberg, president and CEO at IAB, said in a statement, “These landmark figures confirm marketers’ confidence in using digital to reach consumers.”
- These results come during a week where MAGNA Global and ZenithOptimedia research forecasted TV spending to drop next year, a first in a non-recession economy, and digital advertising continuing to make gains at TV’s expense.
Dive Insight:
“Brands and agencies are focusing ever more attention on interactive screens, following consumers as they flock to digital platforms to be entertained, engaged and informed,” Sherrill Mane, svp of research, analytics and measurement for IAB, said.
The clear uptick in digital ad spending illustrates a shift in which marketers are increasingly favoring new media. MAGNA Global’s recent report found digital is expected to surpass TV as the top media channel in 2017. A key reason for this shift is younger demographics are turning to streaming media over more traditional TV habits in markets ranging from North America and Europe to many emerging markets.
Going into 2016, brands would be remiss to not double down on digital, and more specifically take a mobile-first approach. In the IAB's half-year report for 2015, it broke out numbers for separate digital segments that showed mobile was the fastest-growing category for the first half the year with a 54% revenue jump to $8.2 billion. IAB is expected to break those figures out again in its end-of-year report.
The Internet Advertising Revenue Report is conducted independently by the New Media Group of PwC and is composed of data provided directly by companies selling online ads, a process that lends the report a high level of accuracy credibility.