Internet advertising revenues hit a record $225 billion in the U.S. in 2023, a 7.3 percent increase, according to a PwC report for the Interactive Advertising Bureau (IAB). The connected TV and audio categories saw double-digit growth, as did spending on e-commerce platforms, classified “retail media,” which rose 16.3 percent year-over-year, reaching $43.7 billion in 2023 as key players expanded their ad inventory. Video advertising revenue climbed 10.6 percent year-over-year, to $52.1 billion, with 42 percent of that revenue generated from CTV and OTT streaming.

Adweek calls streaming’s rise “among the transformative happenings” detailed in PwC’s “IAB Internet Advertising Revenue Report: Full Year 2023,” noting that “for the first time, IAB broke out the CTV and OTT components.”

The IAB projects CTV and OTT together to be the fastest-growing media channel in 2024 as well. IAB CEO David Cohen said the IAB expects that when combined with privacy solutions digital advertising “will continue to outpace the market.”

Audio advertising saw the biggest individual channel increase, up 18.9 percent to $7 billion. FAST channels saw strong 2023 growth, with 1,900 free ad-supported streaming television channels in the U.S. at the end of last year, according to Samsung Ads.

“IAB expects the relatively recent addition of ad tiers at major streamers to boost growth in 2024,” reports Adweek.

Projections suggest social platforms will continue to be a major player, merging social commerce, influencer marketing and tech, while machine learning and artificial intelligence, including generative AI, will be increasingly important.

“Though AI can have pitfalls of misinformation, especially in an election year, the industry’s ethical usage of it could further change advertising and help even the playing field,” Adweek writes.

Social media advertising, which saw revenue growth slow in 2022, “regained strength with 8.7 percent YoY growth, increasing to $64.9 billion in 2023,” reports TV Technology, detailing “revenues in the second half of 2023 accounted for $4.1 of the total $5.1 billion increase over the previous year.”

“Meanwhile, although digital advertising revenues for search ($88.8 billion) and display ($66.1 billion) remain high, both showed relatively modest annual growth rates during 2023. Search was at 5.2 percent and display at 4 percent YoY growth respectively,” TV Tech notes.