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Industry News
Internet Advertising Rebounded in Q4
Surfersvillage Global Surf News, 12 April, 2010 : - - Though U.S. Internet advertising revenues declined 3.4% in 2009 to $22.7 billion, there are signs of an emergent recovery in the industry, accoridng to the IAB Internet Advertising Revenue Report released Wednesday by Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC).
The fourth quarter of 2009 hit a record quarterly high of $6.3 billion, a 2.6% increase year-over-year and a 14% increase over the third quarter of 2009.
Highlights of the report include:
- Search and display-related advertising continue to represent the largest percentages of overall interactive advertising spend.
- Search revenues, comprising 47% of the total, amounted to nearly $10.7 billion for 2009, up slightly from 2008.
- Display-related advertising—which includes display ads, rich media, digital video and sponsorship—totaled nearly $8 billion in 2009, showing an increase of 4% from 2008.
- One component of display-related advertising, digital video, continues to experience robust growth, with an almost 39% increase from 2008 to 2009.
These latest revenue figures underscore the significant share shift taking place from traditional media to digital.
Based on industry data from PwC from 2005 to 2009 in five key U.S. ad-supported media (television, radio, newspapers, consumers magazines and Internet), the Internet’s share of combined ad revenue grew from 8% to 17%.
“The latest IAB Internet Advertising Revenue Report makes clear that digital media are now a core component of successful advertising and marketing campaigns,” said Randall Rothenberg, President and CEO of the IAB. “As consumers spend more of their time immersed in digital media, marketers are increasingly reaching them there—building brands online and making digital the central force in their cross-media strategies.”
“The record $6.3 billion spent on Internet advertising in the fourth quarter of 2009, while certainly aided by seasonal demand, is a strong indication that the worst of the economic impact on Internet advertising is over and that the seeds of growth have been planted,” said David Silverman, PwC Assurance partner.
The following data highlight key full year revenue data breakouts; dollar figures are rounded.($ millions if not indicated):
Advertising Formats: Search and Display-related ads continue to be leading formats.
|
FY 2009 |
FY 2008 |
|
Search |
47% ($10,698) |
45% ($10,546) |
|
Display Related: |
35% ($7,965) |
33%($7,640) |
|
-Banner Ads |
22% ($5,061) |
21% ($4,877) |
|
-Rich Media |
7% ($1,505) |
7% ($1,642) |
|
-Digital Video |
4% (1,017) |
3%($734) |
|
-Sponsorship |
2% ($383) |
2%($387) |
|
Classifieds |
10% ($2,254) |
14% ($3,174) |
|
Referrals/Lead Generation |
6% ($1,451) |
7% ($1,700) |
|
E-mail |
1% ($292) |
2% ($405) |
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