IAB: US digital advertising grows on retail media, CTV, and audio

US online advertising surged 7% in 2023 to reach $225 billion in revenue, according to the latest IAB figures, with an especially strong Q4 growth of 12%. 

IAB Internet Advertising Revenue Report: Full Year 2023, conducted in partnership with PwC, is based on information reported directly to the professional services firm from companies selling advertising on the internet, as well as publicly available corporate data.

The “winners”, noted IAB CEO David Cohen in a statement, “were retail media, CTV, and audio, which saw the highest growth.”

Where the growth is coming from

• Retail Media revenues showed 16.3% YoY growth in advertising revenues, reaching $43.7 billion in 2023.
• Video advertising revenue experienced 10.6% YoY growth, rising to $52.1 billion; 42% of this came from Connected TV.
• Audio advertising grew 18.9% to reach $7 billion.
• Social media grew 8.7% year-on-year to reach $64.9 billion.
• Advertising revenues for search ($88.8 billion) and display ($66.1 billion) remain high, but at less stellar growth rates, with search at 5.2% and display at 4% YoY growth respectively.

Outlook for 2024 

Privacy regulation, innovation, and generative AI are set to be the big stories affecting digital advertising in 2024, according to the IAB. 

Key quote

“Looking ahead, while there are no shortage of challenges, there are also strong opportunities in sports streaming, creator-based marketing, retail media networks, and beyond,” said Jack Koch, senior vice president, Research and Insights, IAB. 

Sourced from The IAB