By Sahil Patel
As the digital video world prepares for the fourth annual Digital Content Newfronts, the IAB has released a new study that shows continued growth in digital video ad revenues.
According to the study, ad revenues for digital video in the US hit $3.3 billion in 2014, a 17% increase from $2.8 billion in 2013. This comes as “no surprise” to Randall Rothenberg, president and CEO of IAB. “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,” he said in a statement.
The real story, though, is mobile. Per the study, mobile advertising in the US brought in $12.5 billion during in 2014, a whopping 76% increase from the previous year ($7.1 billion). As a result, mobile is now the second-largest digital advertising format, accounting for 25% of 2014 revenues, the IAB said.
Social media advertising is also on the rise, with revenues totaling $7 billion 2014, up by 57% from $4.5 billion in 2013. (Facebook has a lot to do with that, of course.)
“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 at PwC US, which conducted the report on IAB’s behalf. “A prominent rise in social, a significant mobile activity, is driving growth in advertising revenue as consumers spend more time connected.”
Overall, 2014 was a record-breaking year for digital advertising. In total, revenues hit $49.5 billion, up 16% from $42.8 billion in 2013. It’s the fifth consecutive year of double-digit growth for the industry, the IAB said.
The annual IAB Internet Advertising Revenue Report, which is conducted and compiled by the New Media Group at PwC, is based on information supplied by the companies selling ads on the web and other digital platforms.