Each year, the Interactive Advertising Bureau (IAB) releases their annual Internet Advertising Revenue Report which recaps the previous year’s trends. Chacka was able to pull the highlights for our clients and followers so you know what the biggest highlights were:
Major Standouts in 2022
While internet ad revenue slowed there was still jaw-dropping growth in 2022. Record-breaking growth for U.S. Search revenue was reported, coming in at over $84.4 billion! Paid search still came out on top and accounted for the biggest share of digital ad revenue with 40.2%.
IAB shared that paid social media had a slowdown in 2022 with its smallest growth recorded in the last ten years. The report shared that one major cause behind the slow growth was because of Apple’s App Tracking Transparency (ATT).
There was growth in the retail media space too. Total retail media ad networks were ~$37.5 billion in 2022 (the two largest retail media ad networks made up 45% of that market).
Other Surprising Facts
- Between 2021 and 2022, internet advertising revenues grew 10.8% year-over-year (YoY) totalling $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%). Total U.S. digital ad revenues came in at a whopping $209.7 billion.
The Future is Promising
Privacy changes will continue to have big impacts on the digital industry. The IAB stated, “It is important to note that this shift towards privacy preserving advertising practices is not just a temporary trend, but a permanent change. It will require media outlets to redefine what it means to be a premium platform, focusing on contextual relevance and measurable engagement.”
The IAB shared what the industry outlook for 2023 will be:
“The industry’s outlook for 2023 will be promising if it can comply with evolving privacy regulations and adapt to growing consumer usage patterns and expectations, such as ad-supported streaming and retail media. These factors, compounded with economic uncertainty, underscores the importance of finding alternative, efficient ways to reach and measure audiences with fewer identifiers.”— Interactive Advertising Bureau
Finally, Connected TV (CTV) and and Retail Media Networks (RMNs) will continue to grow as they provide the ability to access first-party data.
View the full report for free or create a login to download it. Chacka will continue to keep an eye on the latest trends and keep our client’s and followers up-to-date on other impactful changes ahead.