U.S. digital ad revenues rose 23% in the first half of the year to $49.5 billion, according to the Interactive Advertising Bureau. The semi-annual report card for the digital ad industry won’t surprise anyone, as the major companies—Google and Facebook—reported their earnings for the first half months ago. But it’s a good update on where things stand. The IAB’s report noted, for instance, that mobile made up 63% of digital advertising, up from 54% in the first half of 2017.
Pivotal Research analyst Brian Wieser estimates that television advertising in the same period was around $33 billion, demonstrating just how much digital advertising dominates the overall ad sector. Digital advertising is growing much faster than the overall ad pie. Wieser notes that assuming total advertising in the U.S. continues to grow at around 3% a year and digital grows at more than 20% a year, digital advertising would “eradicate everything else around 2023.” That isn’t likely to happen as some marketers will prefer television long term. But it does show the threat facing traditional media companies.