Digital video ad revenue rose 37% in 2018, IAB says

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The report also found that digital video on mobile devices totaled $10.2 billion last year, up 65% from $6.2 billion in 2017. (Pixabay)

Digital advertising revenues are growing, and video is increasingly becoming a bigger driver of that growth, according to the latest IAB Internet Advertising Revenue Report.

The report found that mobile and video accounted for nearly two-thirds (65%) of 2018’s internet ad revenue, with mobile reaching $69.9 billion, up 40% year over year, and advertising revenue from digital video up 37% from $11.9 billion in 2017 to $16.3 billion in 2018.

Overall, IAB said digital advertising totaled $107.5 billion in 2018, marking the first time the total passed $100 billion.


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"Surpassing $100 billion in annual revenue is a watershed moment for the digital advertising ecosystem—one built on its power to build direct relationships between brands and today’s consumers,” said Randall Rothenberg, CEO at IAB, in a statement. “Innovative platforms like over-the-top television, podcasts, virtual reality, and augmented reality all have the potential to help marketers forge even stronger ties with audiences, as brands navigate the new ‘consumer first’ playing field.”

RELATED: TV advertising still trouncing digital in terms of impressions, Nielsen says

The report also found that digital video on mobile devices totaled $10.2 billion last year, up 65% from $6.2 billion in 2017, and digital video ad revenues on mobile devices comprised 63% of all digital video ad revenues in 2018, up from 52% the year before.

"Advertisers are placing a premium on mobile and video, and in turn the two are fueling the ongoing rise of digital marketing,” said Sue Hogan, senior vice president of research and measurement at IAB, in a statement. “And, the 5G promise of lightning-fast speed and decreased latency presents opportunities for businesses and consumers alike: a smoother user experience, which could further consumer ease with use and frequency of ecommerce on small screens; and it would allow for greater innovation in ad formats. As companies prepare for 5G—and its rollout gains momentum—we can anticipate even more healthy digital growth.”

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