Desktop and Mobile Advertisement Revenue Crosses Television Ads Revenue for the First Time

Desktop and Mobile Advertisement Revenue Crosses Television Ads Revenue for the First Time

Source: Pixabay/geralt

As internet is taking over our day to day lives, mobile and web advertisements are becoming increasingly popular to improve brand awareness. Despite that, television advertisements are still highly popular among advertisers as for a long period of time, television ads played the major role in the marketing department. However, now, the mobile and desktop advertisement revenue has crossed the revenue coming from television ads.

Interactive Advertising Bureau started recording digital advertising expenditure earlier in 2004 and the revenue coming from the advertisings never crossed the traditional television ads. However, last year TV captured roughly $71.3 billion in domestic revenues in 2016 which falls below digital advertising’s $72.5 billion in the IAB’s digital ad revenue report.

David Doty, executive VP and CMO at the IAB, said “Some of the outside calculations we’ve seen being used by the media include revenues that go beyond the U.S., for example, and that’s one place they go wrong. Another thing they don’t understand is traffic acquisition costs. And another thing they don’t seem to take into account is losses from some within the industry are actually hiding gains from a broader base.”

“Seventy-three percent of revenues in Q4 came from the top 10 digital companies, but they only contributed 69% of the growth. That means 31% of the growth came from companies outside the top 10. So the media is mistaken.”

David Silverman, partner at PricewaterhouseCoopers, also shared similar thoughts. He said, “There’s clearly a broad base of companies that are contributing to the growth. The top 10 have changed over time, so that means we’re seeing companies that might not have been a top 10 company a few years ago now become a dominant player.”

“Younger people don’t listen to the radio. They’re consuming their audio through streaming services and maybe are even listening to podcasts and not so much the traditional radio anymore.”

“This is similar to the movement when print went to online and this is the monetization of not eyeballs, but ears.”

Given that internet’s popularity isn’t going to diminish, these figures are likely to grow in the coming years.

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