IAB says online advertising grew to $88B last year — more spending than TV
Online advertising reached $88 billion last year, a 21 percent increase from 2016 and a new high, according to the latest IAB Internet Advertising Revenue Report.
But the IAB says digital ad spending crossed a particularly noteworthy milestone last year — for the first time, digital exceeded the total amount spent on broadcast and cable TV ads ($70.1 billion).
And mobile advertising continued to claim even more of the pie. It already accounted for the majority of digital ad spend in 2016, and in 2017, it grew to $49.9 billion (57 percent of the total, and a 36 percent year-over-year uptick).
Growth was seen in other segments of the digital spectrum, outlined below:
In previous years of this report, growth has been largely attributed to new advertisers. But this year, that is not the case.
“I’d say the cannibalization that has occurred over time is eyeballs shifting away from traditional media,” he said. “This is an area that’s going to continue to really drive growth — the convergence of media and particularly video. At some point, people only watched TV at home, on their living room couch. Now people watch it on any device, anywhere.”
“It’s about giving the user what he wants, when he wants it, on whatever platform he may be on,” added Anna Bager, the IAB’s executive vice president for industry initiatives.