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14/04/2014 by

US Web Ad Revenue Beats Broadcast TV For First Time Ever

Online ad revenue in the US hit a magic high of $42.8 billion in 2013, beating the $40.1 billion generated by broadcast TV ads.

US Web Ad Revenue Beats Broadcast TV For First Time Ever . By trendwatcher Igor Beuker for

I don’t know why last week’s IAB / PWC report shocked the media world? I know that this surpass should come as no surprise to our readers.

Discover the facts and future digital media trends here.

Will Internet Knockout TV?

US Internet Ad Revenues Beats Broadcast TV in 2013

The staggering online ad spend in the US towards $42.8 billion is a 17% increase compared to the year 2012.

US Web Ad Revenue Beats Broadcast TV For First Time Ever . By trendwatcher Igor Beuker for

Mobile ads contributed to the growth in 2013 with $7.1 billion in revenues, a 110% jump from the $3.4 billion generated the previous year.

Display ad revenue grew 7% to $12.8 billion. Online Video, which the report counts as part of display, grew 19% to $2.8 billion. Search grew 9% to $18.4 billion.

And in terms of advertiser category, Retail advertisers accounted for 21% of spending, followed by Financial Services with 13%, and Automotive with 12%.

We hope these facts and benchmarks will help CMOs to re-budget their 2014 spend.

You can read the release summarizing the data or get all intel from the full report.

Future Digital Advertising Trends

Around the globe we will see similar trends as in the US. Online and social video will keep growing massively around the globe.

US Web Ad Revenue Beats Broadcast TV For First Time Ever . By trendwatcher Igor Beuker for

Mobile is the next big gateway and mobile advertising spend will heavily grow in Europe as well. And how about mobile in APAC?

Markets like China, South Korea, Japan and India skipped the fixed (PC) internet. People directly jumped to high speed mobile internet. This will push mobile ad revenue to staggering amounts coming 5 years.

Also the massive eCommerce adoption in APAC will drive search and display ad revenue. Keep in mind that by 2025, nearly two thirds of the global population will live in Asia.

Now add up performance marketing, native advertising and programmatic advertising and a market like China might show the same curves as the US over a period of 5 years.

My Opinion

One-way communication and TV ran the show for about 60 years. But Hulu, Netflix and Amazon already gave broadcasters and TV networks a very serious warning.

So I’d like to welcome broadcasters and TV networks to the re-evolution of the medium Television.

But I am an optimist. Because I know that addressable TV could finally make TV the accountable marketing medium. As accountable as the internet.

So let me leave you with my closing thought: A pessimist sees danger in every opportunity but an optimist sees opportunity in every danger.

In the last 60 years TV advertising indeed dominated the media mix. Be an optimist. Embrace change, act digital and lead the way.

What About You?
How surprising was this IAB / PWC report to you? We all get smarter from peer discussions, so share your opinion.

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About the Author
Igor Beuker is an acclaimed trendwatcher & pro speaker, serial entrepreneur, marketing consultant and board member at several disruptive media, technology and entertainment firms. Book Igor as keynote speaker, follow Igor on Twitter or contact him via LinkedIn.


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