Internet Advertising Revenue Up 15.2% So Far This Year

Oct 10th, 2008 | By | Category: General

Internet advertising revenues (U.S.) for the first six months of 2008 were $11.5 billion, a half-year record that represents a 15.2 percent increase over the first half of 2007.

The numbers come from the IAB Internet Advertising Revenue Report (pdf), covering the first six months and the second quarter of 2008.

Search and Display-related advertising continue to set records.

Search revenues totaled almost $5.1 billion for the first six months of 2008, up 24 percent from the $4.1 billion for the same period in 2007.

Display-related advertising totaled close to $3.8 billion for first six months of 2008, compared to the $3.2 billion reported for the same period in 2007, showing about a 19% increase. Display-related advertising includes Display Banner ads, Rich Media, Digital Video, and Sponsorship.

The following data highlights key first six-month revenue data breakouts; dollar figures are rounded. ($ millions if not indicated):

Advertising Formats: Search and Display-related ads continue to be leading formats.

 
FH 2007
FH 2008
Search
41% ($4,097)
44% ($5,064)
Display Related:
32% ($3,198)
33% ($3,799)
    -Banner Ads
21% ($2,099)
21% ($2,418)
    -Rich Media
7% ($699)
7% ($806)
    -Digital Video
1% ($100)
3% ($345)
    -Sponsorship
3% ($300)
2% ($230)
Classifieds
17% ($1,699)
14% ($1,611)
Referrals/Lead Generation
8% ($799)
7% ($806)
E-mail
2% ($200)
2% ($230)
 
Industry Concentration: Percentages of revenues by the top 10, top 25 and top 50 have remained consistent.
 
FH 2007
FH 2008
Top 10
70%
70%
Top 25
82%
81%
Top 50
91%
90%

Pricing Models: Performance deals continue to be the leading pricing models, followed closely by CPM deals.

 
FH 2007
FH 2008
Performance Deals
50%($4,997)
52%($6,007)
CPM
45%($4,497)
44%($5,026)
Hybrid
5%($499)
4% ($477)

Conducted by the New Media Group of PricewaterhouseCoopers, the Internet Advertising Revenue Report was launched in 1996 by the IAB, and aggregates data from all companies that report meaningful online advertising revenues. The results are considered the most accurate measurement of interactive advertising revenues with the data compiled directly from information supplied by companies selling advertising on the Internet. The survey includes data concerning online advertising revenues from Web sites, commercial online services, ad networks, free e-mail providers, and all other companies selling online advertising. First and third quarter revenue reports are estimates, with the actual figures being released along with second and fourth quarter data respectively. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information.

via IAB

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