Internet advertising revenues in the US reached a new high of $225 billion in 2023, and audio platforms — including podcasts, streaming radio, and streaming music — were main drivers of growth, according to the 2023 IAB Internet Advertising Revenue Report by PwC.
Overall growth was particularly robust in Q4, where revenues soared to $64.5 billion, showing a 12.3% increase compared to the same period in the previous year. For all of 2023, there was a 7.3% increase year-over-year.
For audio advertising, the report found a substantial 18.9% increase in revenue, totaling $7 billion for the year. Besides AM/FM streams and podcasting, music streaming services conAI-driven personalization and expanded audio subscription models with ad-supported options are considered major contributors.
Looking ahead to 2024, the trend is expected to continue with companies optimistic about further expansion.
Significant trends shaping the future include the adoption of privacy-preserving advertising methods, considered a permanent shift rather than a temporary trend. The industry is also witnessing a convergence of social commerce, reality technology, and influencer marketing, enhancing engagement and conversions on social media platforms. Generative AI was also found to be revolutionizing advertising by optimizing content personalization and real-time campaign adjustments.
IAB CEO David Cohen commented, “Despite inflation fears, interest rates at record highs, and continuing global unrest, the U.S. digital advertising industry continued its growth trajectory in 2023. With significant industry transformation unfolding right before our eyes, we believe that those channels with a portfolio of privacy-by-design solutions will continue to outpace the market. For 2023, the winners were retail media, CTV, and audio which saw the highest growth.”
IAB Senior Vice President of Research and Insights Jack Koch said, “Looking ahead, while there is no shortage of challenges, there are also strong opportunities in sports streaming, creator-based marketing, retail media networks, and beyond. 2023 is proof that the industry can stay resilient in the face of change.”
