NEW YORK: Digital adspend in the US increased 21% year-on-year to reach a record high of $88bn in 2017, according to the latest internet advertising revenue report from the Interactive Advertising Bureau (IAB).

Prepared by PwC US, the professional services firm, the report confirmed that digital advertising, including mobile and video, is continuing to surge ahead with double-digit growth rates.

Spending on mobile, for example, rose from $36.6bn in 2016 to $49.9bn in 2017, representing a 36% year-on-year increase and giving mobile the majority (57%) of total digital advertising expenditure.

Meanwhile, spending on digital video hit a record $11.9bn in 2017, a 33% year-on-year increase from $8.9bn in 2016, while total social media advertising brought in revenues of $22.2bn last year, up 36% from $16.3bn the year before.

Overall, the IAB stated that its report found for the first time that digital ad revenues have overtaken television (broadcast and cable combined).

In addition, mobile video generated $6.2bn in revenue in 2017, representing 54% year-on-year growth and surpassing desktop video adspend for the first time.

“A double digit uptick in spend on mobile video is testament to both the pull of mobile and consumers’ never-ending demand for sight, sound and motion – even while on the go,” said Anna Bager, EVP of industry initiatives at the IAB.

Elsewhere, the IAB reported that search revenues reached nearly $40.6bn last year, up 18% from $34.6bn in 2016, while banner advertising grew 23% to $27.5bn, with around two-thirds (67%) of that spend coming from mobile banners.

Spending on digital audio also increased last year, rising 39% from $1.1bn in 2016 to $1.6bn in 2017. “Brands are embracing digital audio at a fast clip, recognising the power of this burgeoning medium,” Bager observed.

Commenting on the findings, IAB CEO Randall Rothenberg said: “Consumers are increasingly spending a tremendous amount of time with interactive screens and content – from mobile to desktop and audio to OTT – and brands are in lockstep with a growing commitment to digital ad buys.

“Mobile captured more than half of the total digital adpsend last year and we can easily expect that share to continue to climb. Video also saw significant growth.”

Sourced from IAB, PwC; additional content by WARC staff