U.S. Online Ad Revenues Soar 15% to $10.69B in Q3 2013

Revenue from online ads in the U.S. soared by 15 percent from a year earlier to $10.69 billion in the third quarter.

The IAB and PwC US released the third-quarter data for online ad revenues in the U.S., reporting a whopping $10.69 billion figure for the July-to-September period this year, up 15 percent from $9.26 billion a year earlier.

In the second quarter to June 2013, internet ad revenues topped $10.26 billion, 4.2 percent below the new record, the organizations said in a statement.

Both the IAB and PwC US attributed the increase to the importance of interactive advertising, with consumers spending more time on screens; not on just one, but several screens, including mobile devices that allow ads to stay with them.

Clearly further supporting that trend are the technological strides that allow laser-focused targeting and retargeting of ads, including to out-of-home consumers. The combined success of social and video also fueled the digitalization of consumers and ads. Finally, the rise of relatively new ad forms, such as native advertising and content marketing, also add to the mix.

The graph below illustrates the steady rise of online ad revenues since 1996.

ads-q3-iab

The IAB and PwC could not comment or give details on the verticals that contributed most to the revenue spike. Such elements will be available in the Q4 and full-year report.

With new social channels available, such as Snapchat or Instagram Direct, the game is likely to get more interesting.

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