In 2020, performance-based pricing was the most prevalent pricing model, accounting for 67.1 percent of the online ad revenue in the United States that year, having grown by 4.2 percentage points compared to previous year. CPM (or cost-per-mille) was the most common pricing model in the country, until in 2007 a switch started being visible to performance pricing.
U.S. online advertising revenue
In the fourth quarter of 2018, online advertisers in the United States generated over 35 billion U.S. dollars in revenue. This was an increase of roughly 13 percent, compared to the previous quarter and it was also the quarter with the highest revenue since 2007. About 44 percent of all online ad revenue in the United States in 2018 was achieved through search advertising. Roughly a third of the earnings was generated through banner ads, while 17 percent came from digital video adverts.
Growing digital advertising formats
In 2020, the mobile, social, and video ad formats were expected to grow the most in terms of revenue. Of the main advertising streams, desktop is the sole format projected to decrease in ad revenue in the future. Desktop advertising revenue was predicted to decline by roughly four percent in 2019 and by almost nine percent in 2020.
Distribution of online advertising revenue in the United States from 2004 to 2020, by pricing model
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Distribution of online advertising revenue in the United States from 2004 to 2020, by pricing model
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* CPM stands for cost-per-mille (per thousand impressions) and is a term typically used in advertising. Figures preceding 2019 were retrieved from earlier report.
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PwC, & IAB (U.S.). (April 7, 2021). Distribution of online advertising revenue in the United States from 2004 to 2020, by pricing model [Graph]. In Statista. Retrieved February 22, 2025, from https://www.statista.com/statistics/190484/us-online-advertising-revenue-by-pricing-model-since-2004/
PwC, und IAB (U.S.). "Distribution of online advertising revenue in the United States from 2004 to 2020, by pricing model." Chart. April 7, 2021. Statista. Accessed February 22, 2025. https://www.statista.com/statistics/190484/us-online-advertising-revenue-by-pricing-model-since-2004/
PwC, IAB (U.S.). (2021). Distribution of online advertising revenue in the United States from 2004 to 2020, by pricing model. Statista. Statista Inc.. Accessed: February 22, 2025. https://www.statista.com/statistics/190484/us-online-advertising-revenue-by-pricing-model-since-2004/
PwC, and IAB (U.S.). "Distribution of Online Advertising Revenue in The United States from 2004 to 2020, by Pricing Model." Statista, Statista Inc., 7 Apr 2021, https://www.statista.com/statistics/190484/us-online-advertising-revenue-by-pricing-model-since-2004/
PwC & IAB (U.S.), Distribution of online advertising revenue in the United States from 2004 to 2020, by pricing model Statista, https://www.statista.com/statistics/190484/us-online-advertising-revenue-by-pricing-model-since-2004/ (last visited February 22, 2025)
Distribution of online advertising revenue in the United States from 2004 to 2020, by pricing model [Graph], PwC, & IAB (U.S.), April 7, 2021. [Online]. Available: https://www.statista.com/statistics/190484/us-online-advertising-revenue-by-pricing-model-since-2004/
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