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Digital Advertising Revenues Rise to $26.2 Billion in Q3 2018, Up 22% Year-Over-Year, According to IAB

Strong Q3 Builds on Record-Breaking Half-Year 2018

NEW YORK, NY (February 14, 2019) — U.S. digital advertising revenues rose to $26.2 billion in the third quarter of 2018, solidifying 2018’s claim as the highest-spending first three quarters on record, according to the latest IAB Internet Advertising Revenue Report released today by IAB and prepared by PwC US. Digital spend for Q3 2018 estimates increased 20.6 percent over Q3 2017. In total, marketers spent $75.8 billion during 2018’s first three quarters—22 percent more than they had spent during the same period a year ago.

“2018 was a landmark year for U.S. digital advertising. Brands continued their record-breaking investment in the marketplace in the third quarter,” said Sue Hogan, Senior Vice President, Research and Measurement, IAB. “Last year saw significant growth in the OTT marketplace and in the direct-to-consumer brand ecosystem—contributing factors in digital’s successful Q3.”

“Digital has shown year-after-year that it continues to draw and engage audiences,” said David Silverman, Partner, PwC US. “It’s no surprise that advertisers are following their target customers to whatever screen they are on, and that screen is more likely to be a digital one.”

The Q3 revenue estimates are based upon a survey of the largest companies, which are then projected to the overall market based upon recent historical revenue market share. The estimates are updated, when necessary, in connection with the more detailed analysis prepared for the IAB’s half year and full year reports.

IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by PwC US. The data is compiled directly from information supplied by companies selling advertising on the internet. The survey includes data concerning online advertising revenues from web sites, commercial online services, free e-mail providers, and all other companies selling online advertising.

The full report is issued twice yearly for full and half-year data; and top-line quarterly estimates are issued for the first and third quarters. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information.

To view previous reports, please go to www.iab.com/adrevenuereport.

About IAB
The Interactive Advertising Bureau (IAB) empowers the media and marketing industries to thrive in the digital economy. Its membership is comprised of more than 650 leading media and technology companies that are responsible for selling, delivering, and optimizing digital advertising or marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider

business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, it develops technical standards and best practices. IAB and the IAB Education Foundation are committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., IAB advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, the IAB is headquartered in New York City and has a San Francisco office.

About PwC US
At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 158 countries with more than 236,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

©2019 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

IAB Media Contact
Laura Goldberg

347.683.1859
[email protected]

PwC Media Contact
Therese Quiao
202.281.9397
[email protected]