Increasing consumption of digital media and ecommerce growth are the prime drivers of digital ad revenue uptick.
An IAB-PWC report found the total digital ad revenue for 2021 touched $189 billion, marking a 50 billion jump in a single year. At 35.4%, the number also registers the highest YoY growth rate since 2006. According to the report, the second half of 2021 alone garnered $102.8 billion in digital ad revenues.
“Not only was every single digital channel up, but some were up more than 50% year on year,” said Libby Morgan, SVP, chief strategy officer at IAB. Ecommerce was up by 50% in 2021 and touched $870 billion. Similarly, digital audio advertising revenues increased by over $1.7 billion last year, recording a 57.9% YoY growth.
The report predicts that podcasts will drive growth in the digital audio advertising category, with monthly podcast listeners expected to increase by 6.7% CAGR from 2021 to 2025 in the US. On the other hand, search claimed the highest share of total ad revenues at $78.3 billion in 2021.
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