Internet ad revenue has surpassed TV ad revenue for the first time ever in the U.S., according to a new report. And although data shows Canada still lags behind its southern neighbour, the nation is making gains in the realm of new media ad sales.
An April 10 PricewaterhouseCoopers report commissioned by Interactive Advertising Bureau (IAB) shows Internet ad revenue in the United States reached US$42.8 billion in 2013 compared with the US$40.1 billion that TV ad sales brought in.
This represents a 17% jump from 2012, when Internet ad revenue generated US$36.6 billion.
"The news that interactive has outperformed broadcast television should come as no surprise," said IAB president Randall Rothenberg.
"It speaks to the power that digital screens have in reaching and engaging audiences."
But in a report from last year, IAB's Canadian bureau projected Internet ad revenues north of the border would only grow by 9% in 2013, rising from C$3.1 billion in 2012 to C$3.364 billion.
"Actual dollar revenue levels in Canada are substantially less developed than the U.S.," the 2013 report stated.
"While Canada's population is currently 11% of the U.S. population, Internet ad dollars here are only 8% of U.S. Internet ad dollars… this translates into dramatically lower 'revenue per capita' levels in this country."
The report also noted that in 2012, Internet ad revenue in Canada was nearly 90% of TV's ad revenue and was making ground on catching up.
