IAB Announces Internet Ad Revenues Have Passed Television

For the first time in history, internet advertising revenues have surpassed those from broadcast television advertising. In 2013, online ads pulled in $42.8 billion while television reached $40.3 billion. Although the announcement today from IAB isn’t shocking, it does mark a momentous moment for ecommerce retailers and advertisers who have been watching the rise of interactive digital advertising.

In the breakdown of interactive segments we can see that display is growing the slowest of ad formats, with only a 7% rise over 2012. Mobile advertising has exploded with 110% growth, completing a three-year run of triple digit gains. Revenues from the old reliable search continue to increase slow and steady with 8.5% growth.

Our marketing director Dave Rekuc breaks down what this data means for ecommerce:

“Mobile ad revenues are exploding. Being able to accommodate and convert mobile traffic is going to be one of the primary traits of successful online retailers in the coming years.

Despite a lot of hype over newer, more exciting channels, search continues to grow and continues to drive results. It’s going to remain an incredibly useful tool in the digital marketer’s arsenal.

Display ad revenues are still sluggish, but seeing many premium ad inventories open up to real time bidding and support retargeting is an encouraging sign that we could see display’s value start to increase soon.”

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