Advertisers in the U.S. spent $17.6 billion on digital advertising during the third quarter, up 20% from a year ago, according to a report prepared by PwC U.S.
Digital spending continues to increase despite concerns over effectiveness, fraud and sometimes misleading metrics. Most forecasters expect digital spending to surpass spending on TV advertising as early as this year.
“Digital has become a critical part of advertisers’ marketing strategies,” said David Silverman, a partner at PwC U.S. “Increasing media consumption on interactive screens will surely lead to even more investment in the digital landscape.”
The third-quarter spending was also up 4.3% from the second-quarter total.
“The momentum of advertising in mobile, digital video, and other innovative formats is undeniable,” said David Doty, executive VP and CMO for the Interactive Advertising Bureau, which commissioned the report. “These record-setting third quarter revenue figures reflect marketers’ trust in the internet’s power to connect with today’s audiences.”
The third-quarter revenue is estimated based upon a representative sample of the overall survey respondents, PwC said. The data is compiled directly from information supplied by companies selling advertising on the internet. The survey includes data concerning online advertising revenues from websites, commercial online services, free email providers, and all other companies selling online advertising.