The rise of digital ads continues unabated. Internet advertising revenue in the US had the highest Q3 growth rate in a decade with the exception of Q3 2016, according to the latest revenue figures [press release] from the IAB and PwC. Total spending on digital ads in Q3 2018 grew to $26.2 billion, marking a 22% year-over-year increase.
Other than Q3 2016, which saw a growth rate of 24% year-over-year, this is the highest third-quarter growth rate in more than a decade.
Online advertising has already overtaken traditional television advertising. Figures from prior PwC research shows that the online advertising market size in 2018 was $99.8 billion compared to television’s $71 billion. Online advertising is projected to increase by another $27.6 billion by 2022, while TV advertising is forecast to only rise by close to $4 billion.
In IAB’s H1 2018 report, video was revealed as the fastest growing format for advertising with a total of 34.8% growth. However, there are still challenges that marketers are facing with video. This includes the investment required for quality creative as well as the ability to prove video’s effectiveness.
About the Data: The Q3 revenue estimates are based upon a survey of the largest companies, which are then projected to the overall market based upon recent historical revenue market share. The estimates are updated, when necessary, in connection with the more detailed analysis prepared for the IAB’s half year and full year reports.