Internet advertising revenues in the U.S. reached a record high of $42.8 billion in 2013, according to a report released by the Interactive Advertising Bureau (IAB). This was a 17 percent jump compared to 2012 and means that Internet has surpassed broadcast TV for the first time.
Breaking down revenues by ad format, search led the way with a total share of $18.4 billion, up 9 percent from 2012. Mobile, however, was the biggest contender of overall growth, reaching $7.1 billion in 2013. This was a 110 percent jump from the previous year. Display ad revenue grew 7 percent to $12.8 billion, while video, which the report counts as part of display, grew 19 percent to $2.8 billion.
A look at different industries reveals that retail advertisers continued to represent the largest category of Internet ad spending. This category accounted for 21 percent of total revenues in 2013 and slightly increased (1 percent) from 2012.
Revenue share in retail was followed by financial services (13 percent), auto (12 percent), telecom (9 percent), and leisure travel (8 percent).
Other findings in the report include:
- In the fourth quarter of 2013, revenues in the U.S. crossed $12.1 billion for the first time.
- While cable TV has emerged as a major advertising medium, its ad revenue growth was slower than other media.
The IAB report was produced in partnership with PricewaterhouseCoopers. You can download the full report here.