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Digital advertising in 2019 was worth $124.6 billion, according to the IAB and PriceWaterhouseCoopers. That’s about $54 billion more than advertisers spent on television, the number two medium.
Online ad growth is slowing, however. Last year, it came in just under 16% year-over-year, $17 billion more than 2018. Categories that exceeded the overall 16% growth rate included:
Online video advertising – 33.5% Mobile – 24% Social media advertising – 23% Internet audio advertising – 21.2%
Roughly 70% of digital ads were served and seen on mobile devices, a five-point gain from last year. But, mobile ad revenue growth is slowing too, “as the underlying platform is maturing.” Desktop revenue, however, is nearly flat: $37.9 (2019) vs. $37.6 billion (2018).
Revenue share by channel. Paid search captured 43.9% of total ad revenue, reaching $54.7 billion in 2019, up about 13% year-over-year. Display advertising and sponsorships had a roughly 31% share ($38.1 billion). Video’s share was about 17% ($21.7 billion), an increase of 33.5% compared with 2018. The remaining $10 billion consisted of classifieds ($4.0 billion), lead-gen ($3.4 billion) and audio advertising ($2.7 billion).
Ad buying through programmatic platforms reached $57 billion, which was nearly $10 billion more than last year. To put that in context, programmatic is driving the vast majority (81.5%) of “non-search advertising” online.
Perhaps more concerning than slowing growth is the concentration of revenue in fewer companies. According to the IAB, the top 10 internet companies controlled about 77% of digital revenue in 2019, up from
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