A significant landmark was formed when, just in the first half of 2018, US advertisers spent just under $50 billion, which is an all-time high for the ad industry. To put this in perspective, that figure indicates a YOY increase of 23%, and shows no signs of slowing down! This, according to the Internet Advertising Revenue Report by the Interactive Advertising Bureau (IAB). Last year at the same time, the figures were at $40.3 billion ... almost $10 billion less!
Here are a few more items learned from the IAB's revenue report1:
According to the report analysis, the growth can be partly attributed the direct brand's economical rise, as well as an increase in mobile commerce.
Consumers are not content only spending their money in the traditional brick and mortar stores anymore. In fact, shoppers seem to be attracted to the new "digital-first," or "direct to consumer" (DTC) brands that don't even make an appearance on the store shelves at all. This appeal to online shopping is assisting (if not forcing) brand marketers and store retailers to gain more customers with mobile.
According to IAB's CEO, Randall Rothenberg, "This landmark figure cements digital advertising--whether display, search or mobile video--as one of the most powerful mechanisms of all time for brands to build relationships with consumers. It's a truth upon which direct-to-consumer brands have built their businesses, and from which all businesses can benefit."2
Brand marketers are obviously acting heavily on their belief in the concept of digital advertising. While desktop search may be flat, video and banner seem to be leading the charge ... especially on mobile devices. Digital audio and social media are also seeing spikes. The proof is in the pudding, and there is a LOT of pudding in this day and age.
At Genius Monkey, as a member and strong supporter of the IAB, we stay abreast of the advertising movement and trends so that we can continue to lead the "programmatic pack" through effective advertising and solution management.
Sources: *1 & 2 - IAB 2018 Half Year Report - Media Alert Comparison of 2018 and 2017 Data (in millions)
Giving Audiences What They Want