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Between 2021 and 2022, internet advertising revenues grew 10.8% year-over-year (YoY) totaling $209.7 billion and overall revenues increased $20.4 billion YoY. Q1 saw the highest growth of 21.1% followed by Q2 at 11.8%, resulting in ad revenues for the first half of the year surpassing $100 billion for the first time. Revenues slowed in Q3 (8.4%) and Q4 (4.4%).<\/p>\n
\u201cAfter unprecedented growth in 2021, we expected more moderation in 2022.\u00a0 Economic uncertainty, geo-political unrest, a shifting regulatory environment and addressability changes have all contributed to revenue growing at a slower pace,\u201d said David Cohen<\/strong>, CEO, IAB.\u00a0 \u201cLooking ahead, there is definitely still growth to be had, but it will be harder to achieve and likely less than we have become accustomed to.\u201d<\/p>\n Internet Advertising Revenue Growth Has Slowed in 2022, Revenues Still Increased YoY\u00a0<\/b><\/p>\n \u201cAdvertisers are diversifying their spending to target audiences using fewer identifiable data points,\u201d said Jack Koch<\/strong>, SVP Research and Insights, IAB. \u201cDigital video, digital audio, and the long tail of publishers are benefiting.\u201d<\/p>\n What\u2019s ahead for digital advertising?<\/strong><\/p>\n Privacy and regulation will change advertising.<\/strong> The importance of privacy by design in the digital industry has never been more clear.\u00a0 Companies need to adjust to the latest state-level privacy regulations enforced this year in California, Virginia, Colorado, Connecticut, and Utah (and, effective January 1, 2025, Iowa), along with consumers\u2019 worries about their data that resulted in privacy legislation and signal loss. This adaptation has become a catalyst for innovation in the industry, leading to the development of novel solutions that balance data-driven advertising with user privacy.<\/p>\n Evolving channels<\/strong> E-commerce and media companies are also working hand-in-hand to develop new ways to target and measure the effectiveness of advertising, including shoppable ads, affiliate marketing, and direct-to-consumer advertising.<\/p>\n Redefining \u201cpremium\u201d<\/strong> \u201c2023 promises to be a challenging year. But this industry, more than most, is galvanized by change,\u201d added Cohen. \u201cThe job now is identifying where the areas of growth are going to be, follow the consumer and develop solutions that meet and exceed their needs.\u201d<\/p>\n IAB Internet Advertising Revenue Report: Full Year 2022 can be downloaded here. And please join us for a special webinar April 12 for more insights on the report findings and trends.<\/p>\n Methodology<\/strong> About IAB<\/strong>\n
The advertising industry is witnessing a shift towards solutions that can leverage their first-party data. This has resulted in the continued growth in connected TV (CTV) and retail media networks (RMNs), as\u00a0these channels provide advertisers with a way to reach specific audiences with relevant ads at scale.<\/p>\n
While \u201cpremium\u201d content once meant \u201cHollywood production\u201d value, it\u2019s now more than ever is in the eyes of the beholder. Viewer attention is shifting to content that can match specific interests \u2013 regardless of the production value, format, or screen \u2013 and creator content is now viewed as premium by many.<\/p>\n
Commissioned by the IAB and conducted by PwC Advisory Services LLC (\u201cPwC\u201d) on an ongoing basis, with results released quarterly, the \u201cIAB Internet Advertising Revenue Report\u201d was initiated by the Interactive Advertising Bureau (IAB) in 1996. This report uses data and information reported directly to PwC from companies selling advertising on the internet as well as publicly available corporate data. The results reported are considered to be a reasonable measurement of internet\/online\/mobile advertising revenues because much of the data is compiled directly from information supplied by companies selling advertising online. The report includes data reflecting desktop and mobile online advertising revenues from websites, commercial online services, ad networks and exchanges, mobile devices, and email providers, as well as other companies selling online advertising. The report is conducted independently by PwC, including research by their in-house market research team, on behalf of the IAB. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information. Only aggregate results are published and individual company information is held in strict confidence with PwC. Further details regarding scope and methodology are provided in the appendix of this report.<\/p>\n
The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad 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, IAB develops technical standards and solutions. IAB is 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., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.<\/p>\n