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Informed Owl

Wise Local Marketing

Interactive gets most money of any medium, says Interactive Advertising Bureau

The Interactive Advertising Bureau (IAB) recently issued its annual report on advertising revenues.  THE IAB is the organization that leads our industry, providing guidance and research about all facets of interactive advertising. It’s a well respected and very influential organization, so when it talks, I listen.

This report says that 2013 was the first year that interactive advertising pulled in more money ($42.8B) than any other medium, including broadcast TV. Sure, that’s a big deal for our industry. But that’s a trajectory that we’ve seen coming for some time now.  For me, there’s a more compelling headline.

in Q4 of last year, mobile advertising eclipsed display advertising, garnering 19% of all interactive spending. Mobile spending is larger than that spent on digital video, even on online classifieds.

Take a look at the chart.  It shows an eight-year revenue trend by ad formats.  You can see that search is still the big dog and that display has been fairly consistent.

Then, there’s mobile.

There are only four years of history because it’s only been around four years as an advertising platform.  It doubled from 2013 to 2014.   Keep in mind that “mobile” typically includes ads that appear on tablets as well as smart phones, so that includes advertising that just happened to be delivered on mobile device, and maybe not specifically targeted to mobile.

Keep in mind, more web content is being consumed on mobile devices than on laptops or desk tops. Those days are behind us.

The mobile age is here, and the money is following.