Executive summary 2017 full year highlights Internet advertising revenues (“revenues”) in the United States totaled $88.0 billion for the full year (“FY”) of 2017, with Q4 2017 accounting for approximately $26.1 billion and Q3 2017 accounting for approximately $21.8 billion. Revenues for FY 2017 increased 21.4% over FY 2016. Key trends underlying FY 2017 results Fourth quarter revenues exhibit strong growth in FY 2017 Internet advertising revenues in the United States totaled $26.1 billion in the fourth quarter of 2017, an increase of 20.0% from the 2017 third quarter total of $21.8 billion and an increase of 20.8% from the 2016 fourth quarter total of $21.6 billion. The shift to mobile continues Advertising revenues delivered on mobile devices totaled $49.9 billion in FY 2017, a 36.2% increase from the prior full year revenues of $36.6 billion. Advertising delivered on mobile devices now makes up 56.7% of total internet advertising revenues. “Consumers are increasingly spending a tremendous amount of time with interactive screens and content–from mobile to desktop and audio to OTT–and brands are in lockstep with a growing commitment to digital ad buys. Mobile captured more than half of the total digital ad spend last year and we can easily expect that share to continue to climb. Video also saw significant growth. That is no surprise—especially after seeing buyers clamoring to get into last week’s NewFronts presentations in New York.” — Randall Rothenberg, President and CEO, IAB “Digital advertising revenues have been steadily rising for several years and buyers continue to increase their investment. From mobile to video, consumers are constantly turning to interactive screens, whether for information, entertainment, shopping, sharing, or more.” — David Silverman, Partner, PwC PwC | IAB internet advertising revenue report 2