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, and audio platforms (including podcasts, streaming radio, and streaming music) are the main drivers of growth.
Overall growth was particularly strong in the fourth quarter, with revenue soaring to $64.5 billion, up 12.3% from the same period last year. For the full year of 2023, the year-on-year growth rate is 7.3%.
The report found that audio advertising revenue increased significantly by 18.9%, with total revenue for the year reaching $7 billion. In addition to AM/FM streaming and podcasts, music streaming services, AI-driven personalization, and expanded audio subscription models with ad-supported options are considered key contributors.
Looking ahead to 2024, this trend is expected to continue, with companies optimistic about further expansion.
Important trends shaping the future include the adoption of privacy-preserving advertising approaches, which are considered a permanent shift rather than a temporary trend. The industry is also witnessing the convergence of social commerce, reality technology and influencer marketing, increasing engagement and conversion rates on social media platforms. The study also found that generative AI is revolutionizing the advertising industry by optimizing content personalization and real-time campaign adjustments.
David Cohen, CEO of IAB, commented: “Despite inflation concerns, record-high interest rates, and continued global turmoil, the U.S. digital advertising industry continues its growth trajectory in 2023. With a major industry transformation unfolding before our eyes, we believe These channel privacy-by-design solution portfolios will continue to outperform the market in 2023, with the winners being retail media, CTV and audio.”
Jack Koch, senior vice president of research and insights at IAB, said: “Looking ahead, while there are challenges, there are also huge opportunities in areas such as sports streaming, creator-based marketing, retail media networks and more. 2023 is proof that The industry can remain resilient in the face of change.”