According to PwC's 2023 IAB Internet Advertising Revenue Report, U.S. Internet advertising revenue will reach a new high of $225 billion in 2023, with audio platforms including podcasts, streaming radio, and streaming music being the main drivers of growth. Ta.
Overall growth was particularly strong in the fourth quarter, with sales soaring to $64.5 billion, an increase of 12.3% year-over-year. Overall in 2023, it increased by 7.3% compared to the previous year.
For audio advertising, revenue increased by a significant 18.9%, reaching an annual total of $7 billion, according to the report. In addition to AM/FM streams and podcasting, music streaming services conAI-driven personalization and an expanded audio subscription model with ad-supported options are considered key contributors.
Looking ahead to 2024, this trend is expected to continue and companies are optimistic about further expansion.
Key trends shaping the future include the adoption of privacy-preserving advertising methods, but this is seen as a permanent change rather than a passing trend. The industry is also converging social commerce, reality technology, and influencer marketing to boost engagement and conversion on social media platforms. Generative AI has also been found to be revolutionizing advertising by optimizing content personalization and real-time campaign adjustments.
IAB CEO David Cohen commented: “Despite inflation concerns, record interest rates, and continued global uncertainty, the U.S. digital advertising industry continued its growth trajectory in 2023. We believe these channels will continue to grow as they evolve.''Our portfolio of privacy-by-design solutions will continue to outperform the market. The winners in 2023 were retail media, CTV, and audio with the highest growth. ”
Jack Koch, IAB's senior vice president of research and insights, said: 2023 proves that the industry can remain resilient in the face of change. ”
