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Digital Advertising Spend Registers Record Growth in 2015

By April 26, 2016 June 26th, 2019 No Comments

According to the IAB 2015 report, digital ad revenues in the United States have grown by over $10 billion. Mobile has continued to grow and now accounts for 35% of search and display advertising revenues. Digital ad revenues grew from $49.5 billion in 2014 to $59.6 billion in 2015, which was a growth of 20.4%. The Interactive Advertising Bureau’s report was released by PwC.

Growing Focus on Mobile

IAB also released a report that displayed the growth in digital ad revenues in the past 10 years (from 2005 to 2015). The industry has continued to grow at a CAGR of 17%. Mobile started playing a role from 2010. It has continued to grow at a CAGR of 100% since then. Non-mobile ad revenues have grown at a CAGR of 9% during the past 5 years (2005-2015).

The year 2015 saw record growth in digital ad revenues. During Q4 2015, digital ad revenues grew to $17 billion against $14.5 billion in Q4 2014.

Overall, search accounts for almost 50% of total digital spend. Display advertising accounts for 42% in 2015. However, mobile alone accounts for 35% in search and display ad revenues. The mobile-only share for 2014 was 25%.

Social Media Advertising

Social media ad revenues touched almost $11 billion in 2015. The figure was $7 billion in 2014. The revenues include advertising on social media sites, social gaming sites, and social gaming apps on all devices. There was major boost in revenues in the second half of 2015, as the ad spend grew from $4.4 billion in first half to $6.4 billion in second half. Social media ads had a total market share of 18% in 2015, against 14% the previous year.

Digital Keeps Growing

Digital advertising has continued to gain share in the overall ad spending in the United States. It is expected that the situation is same in the United Kingdom. Online ad spend had surpassed broadcast television ad spend and cable TV ad spend individually, a few years ago. Last year too digital ad revenue has continued to grow and grab more share against total broadcast and cable ad spend.

It is believed that social, mobile and programmatic are the 3 most important trends that have continued to force this high growth for online advertising.

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