Report: US advertisers spent $17.6 billion on digital ads in Q3
It was the highest third quarter for digital advertising spending on record and reflects 20 percent year-over-year growth.
According to IAB data out today, US advertisers spent $17.6 billion on digital ads in Q3. The trade organization said this was “the highest third quarter for digital advertising spending on record, and represents a 20 percent increase over the same time period in 2015.” It also represents a 4.3 percent sequential increase over Q2.
The chart below shows internet ad revenue growth over the past decade.
For the first half of 2016 the following were the US ad format spending breakouts:
- Search — 50 percent
- Display — 31 percent
- Video — 12 percent
- Other — 8 percent
Mobile ad spending was responsible for 47 percent of all internet ad revenues in the first half, which was up from 30 percent a year ago. According to a forecast from eMarketer, digital advertising will surpass TV ad spending this year.
Despite these impressive figures, all is not well.
Putting aside ad blocking, measurement problems abound, and digital ad fraud is growing. According to one estimate from the ANA and WhiteOps, digital advertisers will have wasted at least $7 billion this year, globally, because of bots. These developments have caused a loss of some confidence among advertisers and agencies, which needs to be repaired as the industry heads into 2017.