Digital Ad Spend Tops $88B in 2017, a 21% Gain

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NEW YORK – Digital ad spending surpassed $88 billion in 2017, a 21-percent jump over 2016’s numbers, says a new internet advertising revenue report from the Interactive Advertising Bureau (IAB). 

Mobile fueled much of the growth, which now represents a 57-percent share of the total digital advertising pie in the U.S. And total mobile ad spending reached $49.9 billion in 2017 – an increase of 33 percent from 2016.

Social continued its surge, notching a fifth consecutive year of double-digit percentage growth with a 36-percent leap to $22.2 billion in 2017.

Search advertising continued its dominance and generated $40.6 billion in 2017, up 18 percent from 2016 results, with 54 percent coming from mobile. However, search’s share of overall digital ad revenue – 46 percent – was down from 48 percent in 2016.

Digital audio advertising rose 39 percent to $1.6 billion in 2017 – roughly three-quarters coming from mobile. “With the proliferation of smart speakers, we expect that to be a growth category next year,” the IAB said.

The IAB doesn’t break out revenue for individual companies, and it remains unclear how much Google and Facebook contributed toward the $88 billion. The IAB says that the top 10 companies contributed more than 74 percent of all digital ad revenue in 2017 but wouldn’t share who the top two companies were.

Brian Wieser, senior analyst at Pivotal Research, says Google and Facebook are capturing 90 percent of all growth in digital advertising.