Report: Online Advertising Reaches All-Time Q1 High, Will Surpass TV Revenues In 2017

Online advertising revenues reached an all-time high of $15.9 billion in the first quarter of 2016, reports the Interactive Advertising Bureau (IAB) — a digital ad business organization. This figure represents a 21% increase over the first quarter in 2015, when digital ad revenues clocked $13.2 billion. This 21% increase represents the sharpest growth spike over the past four years.

“Last year, the industry reached its highest level of investment at over $50 billion,” said IAB’s EVP and CMO, David Doty, in astatement. “And this first quarter lays the foundation for what could very well be the biggest year yet for digital ad spending.”

IAB noted the above figures in its annual Internet Advertising Revenue Report, conducted by professional network PricewaterhouseCoopers (PwC US). “This year’s first quarter numbers speak to the vitality of the interactive marketplace and the power of digital to attract consumers,” noted PwC US partner David Silverman

At the same time, a separate study by PwC — its own 17th annual Global Entertainment and Media Outlook report — predicts that Internet advertising will surpass broadcast advertising in the U.S. in 2017, according to AdWeek. While television advertising is expected to rise from $69.9 billion last year to $81.7 billion in 2020, digital ads were $59.6 billion in 2015, but are expected to hit $93.5 billion by 2020. The biggest gains, according to the report, will happen within the mobile sphere.

PwC’s five-year forecast also estimates that all entertainment and media spending will reach $720 billion by 2020 — an increase over the $603 billion total spent last year.