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U.S. digital ad revenues reach whopping $27.5 billion in first half of 2015

Last updated on December 3rd, 2015 at 11:43 am

Digital advertising revenues in the United States hit an astounding $27.5 billion in the first half of this year, according to a new report from a global non-profit organization that oversees the entire digital advertising industry.

According to the Interactive Advertising Bureau’s (IAB) Internet Advertising Revenue Report, released on Wednesday, Internet ad revenues are up 19 percent from $23.1 billion when compared to the first half of 2014.

The real impressive findings are found when looking at the April-to-June period. In the second quarter of 2015, ad revenues increased 22.5 percent to $14.3 billion, up from $11.7 billion in the same time a year ago.

Also noteworthy is the fact that mobile revenues continued its growing trend. Mobile revenues reached $8.2 billion, up 54 percent from $5.3 billion in the first half of 2014. This means mobile accounts for nearly one-third of Internet advertising revenues, which is considerable growth from just last year’s 23 percent.

Social media, which includes social networks, apps and gaming websites, continued its modest gains. From January to June, social media revenues jumped 51 percent from $2.9 billion to $4.4 billion.

Display-related advertising revenues totaled $6.8 billion, a gain of five percent from $6.5 billion a year ago. It represented 25 percent of digital advertising revenues. Moreover, digital video, a part of display-related advertising, generated $2 billion in revenues, a 35 percent climb from $1.5 billion a year ago.

When looking at the key industries, retail, financial services and the auto market led the way of Internet ad revenues.

Even with the rise of ad-blocking browser add-ons and mobile apps, the digital ad industry remains strong.

David Silverman, a partner at PwC, attributes this growth to the changes in consumer behavior. Today, the consumer is always connected, and thus advertisers are dedicating their resources to mobile video and social media.

“Advertisers are more committed than ever to connect with audiences on digital screens,” said Randall Rothenberg, President and CEO at IAB, in a statement. “Content is key to winning consumer attention – on mobile, in digital video, on desktop, and more – throughout the day.”

TV, Publishers Take Hit

Despite the growth in digital ad revenues, there are two industries that have suffered this quarter: television and publishers.

First, a new report from Magna Global, a media buying and research firm, found that digital ad revenues will surpass TV ad spending faster than expected in 2015 and 2016. Experts say this is a “powerful symbol” in the shift of the U.S. ad market.

Second, eConsultancy released a report earlier this month entitled “Digital Publishing: Increasing Advertiser Value Through Data and Identity,” that found 40 percent of publishers have seen their digital ad revenues stay the same or shrink.

Final Thoughts

All of this suggests that advertisers and B2B brands are committed to digital advertising more than ever before. Everything from mobile screens to social networks, advertisers are staying on the top of the latest technology advancements, while foregoing past media behemoths: television.

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Andrew Moran
Andrew Moran
Andrew Moran is a full-time professional writer and journalist, who covers the areas of business, economics and personal finance. He has contributed to Benzinga, Capital Liberty News, Career Addict, Money Morning and PFHub.