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Internet Ad Revenue Up 15.2% in First Half of 2008

Internet advertising revenues for the first six months of 2008 were $11.5 billion, setting a new half-year record that represents a 15.2 percent increase over the first half of 2007, according to recently released data from The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers, writes MarketingCharts.

The IAB Internet Advertising Revenue Report also shows a Q2 increase of 12.8 percent over the same period in 2007 and shows a slight decline of 0.3 percent from the first quarter.

Search- and display-related advertising also reached all-time highs. Search revenues totaled nearly $5.1 billion for the first six months of 2008, up 24 percent from $4.1 billion for the same period in 2007:

iab-internet-advertising-formats-search-display-june-2008.jpg
(Dollar amounts in millions)

Display-related advertising totaled nearly $3.8 billion for first six months of 2008, compared with $3.2 billion for the same period in 2007, roughly a 19 percent increase. Display-related advertising includes display banner ads, rich media, digital video, and sponsorship.

Other data issued by IAB/PwC:

  • Pricing models. Performance deals continue to be the leading pricing models, followed closely by CPM deals (dollar amounts in millions):

iab-pwc-online-ads-pricing-models-1h08.jpg

  • Industry concentration. Percentages of revenues by the top 10, top 25 and top 50 ad-selling companies have remained consistent from last year:

iab-pwc-online-ads-industry-concentration-1h08.jpg

"Interactive advertising continues to demonstrate year-over-year growth as marketers and consumers increase their embrace of digital media," said Randall Rothenberg, president and CEO of the IAB.

"The essentially flat performance we see quarter to quarter reflects in part cyclical advertising trends. Compared to the trajectory in other media and in the general economy, interactive has outperformed because it delivers a level of accountability unmatched by any other advertising medium."

About the report: The IAB research was conducted by the New Media Group of PricewaterhouseCoopers. Launched in 1996, it aggregates data from all companies that report meaningful online advertising revenues and includes data about online advertising revenues from websites, commercial online services, ad networks, free email providers, and all other companies selling online advertising.

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