Due to the unique efficiency and effectiveness of targeted and measurable campaigns, Internet advertising has shown strong growth in the first six months of 2008, compared to the same time period last year. This growth has come in spite of an environment that has put significant pressure on the advertising industry in general.
NEW YORK (PRWEB) October 7, 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 $3.2 billion reported for the same period in 2007, showing about a 19% increase. Display-related advertising includes Display Banner ads, Rich Media, Digital Video, and Sponsorship.
"Interactive advertising continues to demonstrate year over year growth as marketers and consumers increase their embrace of digital media," said Randall Rothenberg, president and CEO of the IAB. "The essentially flat performance we see quarter to quarter reflects in part cyclical advertising trends. Compared to the trajectory in other media and in the general economy, interactive has outperformed because it delivers a level of accountability unmatched by any other advertising medium."
"Due to the unique efficiency and effectiveness of targeted and measurable campaigns, Internet advertising has shown strong growth in the first six months of 2008, compared to the same time period last year. This growth has come in spite of an environment that has put significant pressure on the advertising industry in general." said David Silverman, partner, Entertainment, Media & Communications Practice, PricewaterhouseCoopers.
The following data highlights key first six-month revenue data breakouts; dollar figures are rounded.
($ 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)
CPM 45% ($4,497)
Hybrid 5% ($499)
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.
A copy of the full report is available at: http://www.iab.net/media/file/IAB_PWC_2008_6m.pdf
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About the IAB:
The Interactive Advertising Bureau (IAB) is comprised of more than 375 leading media and technology companies who are responsible for selling 86% of online advertising in the United States. On behalf of its members, the IAB is dedicated to the growth of the interactive advertising marketplace, of interactive's share of total marketing spend, and of its members' share of total marketing spend. The IAB educates marketers, agencies, media companies and the wider business community about the value of interactive advertising. Working with its member companies, the IAB evaluates and recommends standards and practices and fields critical research on interactive advertising. Founded in 1996, the IAB is headquartered in New York City with a Public Policy office in Washington, D.C. For more information, please visit http://www.iab.net.