Photo Illustration by Joel Arbaje; Source Photography by Sharon Wright
(FB), the big fish in the digital-advertising world.
U.S. digital-advertising revenue surged 23% to a record $49.5 billion in the first half of 2018, according to the IAB Internet Advertising Revenue Report, released on Tuesday.
Mobile ads led the way at $30.9 billion, up 42% from the same period a year ago. Search grew 19% to $22.8 billion, from a year ago.
“At $49.5 billion in total ad revenue for the (first) half (of the year), it’s safe to say digital advertising should exceed $100 billion for the year (in the U.S.),” Brian Wieser, senior analyst at Pivotal Research Group, wrote in a note published Tuesday.
Before Facebook and Google get too comfortable, however, they may want to look in the rearview mirror. While they continue to dominate the field,
(AMZN) is making strides, Wieser pointed out.
The two companies were responsible for about 75% of all digital-advertising growth in the quarter, both excluding and including search in the U.S. “If these estimates are correct, digital advertising that did not go through Facebook or Google performed reasonably well” in the first half of 2018, rising 18%, or $1.5 billion, Wieser wrote in his note.
“On the other hand, we could alternately calculate that the bulk of this growth went to Amazon,” which probably added $1 billion in domestic ad revenue year-over-year, he added.
Growth was across the board.
Social-media revenue rose 38% to $13.1 billion in the first half of the year, from a year ago.
(TWTR) and Facebook as they add video content, was $7 billion in the first six months of this year, up 35% from a year earlier.
Total banner ad revenue increased 27% to $15.7 billion in the first half of 2018, from a year ago.
The most jarring growth came in mobile advertising, which has ballooned to $30.9 billion in the first half of 2018 from $3 billion in all of 2013.
Write to Jon Swartz at [email protected]