April 27, 2017 Jason J. Zotara

Digital Advertising Spend Hits a Record $72.5 Billion in 2016 [REPORT]

Mobile ad revenue leads the charge with an all-time high of $36.6B and accounts for more than half of all internet advertising revenue.

According to the 2016 IAB Internet Advertising Revenue Report, internet advertising revenue in the US totaled $72.5 billion in 2016, with Q4 2016 accounting for approximately $21.6 billion and Q3 2016 accounting for approximately $18.2 billion. Revenues for the full year of 2016 increased 21.8% over 2015.

The following chart highlights quarterly ad revenue since IAB began measuring it in 1996; dollar figures are rounded.

 

Mobile is now the dominant vehicle for digital ad spend.

Mobile advertising accounted for more than half (51%) of the record-breaking $72.5 billion spent by advertisers last year.

“Mobile fueled the internet economy in 2016, with advertisers showing their confidence in digital to achieve their marketing goals,” said Randall Rothenberg, President and CEO, IAB. “This increasing commitment is a reflection of brands’ ongoing marketing shift from ‘mobile-first’ to ‘mobile-only’ in order to keep pace with today’s on-the-go consumers.”

 

Other highlights from the report include:

  • Digital video hit a record $9.1 billion in 2016, a 53 percent year-over-year rise from $5.9 billion in 2015
  • On mobile devices, video revenue skyrocketed, more than doubling—up 145 percent year-over-year—to nearly $4.2 billion
  • Social media advertising generated $16.3 billion last year, climbing 50 percent over 2015’s $10.9 billion
  • Search revenues reached nearly $35 billion in 2016, up 19 percent from $29.5 billion in 2015
  • Digital audio, measured for the first time in this report, brought in revenues of $1.1 billion in 2016
  • Retail, representing 21.3 percent of internet ad spend in 2016, Financial Services at 13.3 percent, and automotive at 12.5 percent, continue to have the largest category share, with Media (5.2%) picking up speed, up 13 percent over 2015

Download the full report: https://www.iab.com/wp-content/uploads/2016/04/IAB_Internet_Advertising_Revenue_Report_FY_2016.pdf

Jason J. Zotara

Jason J. Zotara

Jason is the Founder of Ten26 Media and has more than fifteen years of experience supporting brands and agencies with digital advertising services. On his downtime, you can find him exploring Colorado with his wife and dog, hanging with friends or playing football.
Jason J. Zotara
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About the Author

Jason J. Zotara

Jason is the Founder of Ten26 Media and has more than fifteen years of experience supporting brands and agencies with digital advertising services. On his downtime, you can find him exploring Colorado with his wife and dog, hanging with friends or playing football.