October 9, 2013, 1:45 PM

U.S. online ad spending jumps 18% in the first half of 2013

Mobile makes big gains, but search still commands the largest share.

Lead Photo

Randall Rothenberg, president and CEO of the IAB

U.S. online advertising spending increased 17.9% year over year in the first half of 2013, to nearly $20.07 billion from nearly $17.03 billion for the same period last year, according to the Interactive Advertising Bureau.

The trade group for sellers of online ads says that online ad spending in the second quarter reached $10.26 billion, up 4.6% from the first quarter of 2013 and 17.6% from the second quarter of 2012.

The report, prepared by PricewaterhouseCoopers, also found:

• Mobile spending spiked 145% year over year in the first half to about $3.0 billion. That accounts for about 15% of the first half 2013 spending.

• Search spending jumped 7% year over year in the first half to $8.7 billion. That amounts to about 43% of online ad spending in the first half of the year, giving search the largest single share of that spend.

• Display advertising spending increased 9% year over year in the first half to $6.1 billion. Display accounted for about 30% of spend during the first half in the United States.

• Digital video spending increased 24% year over year in the first half to $1.3 billion. That accounts for about 6% of the overall first half spending.

• Other first half ad spending came from e-mail marketing—which the trade group puts at $78 million during the first half, essentially the same as in the first half of 2012—along with classifieds and lead generation.

“Digital has steadily increased its ability to captivate consumers and then capture the marketing dollars that follow,” says Randall Rothenberg,  the trade group’s president and CEO. “Mobile advertising’s breakneck growth is evidence that marketers are recognizing the tremendous power of smaller screens. Digital video is also on a positive trajectory, delivering avid viewership and strong brand-building opportunities.”

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