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Your Editorial of the Tech IndustryIAB Says Not to Be Scared of the Economy, Online Ad Revenue Up 15.2%
The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) have just released the IAB Internet Advertising Revenue Report covering the first six months and the second quarter of 2008. Internet advertising revenues (U.S.) for the first six months of 2008 were $11.5 billion, setting yet another new half-year record that represents a 15.2 percent increase over the first half of 2007. The second quarter of ’08 was up 12.8% over the same period of 2007 and showed a slight decline of 0.3% from the first quarter.
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 $3.2 billion reported for the same period in 2007, showing about a 19% increase. Display-related advertising includes Display Banner ads, Rich Media, Digital Video, and Sponsorship.
“Interactive advertising continues to demonstrate year over year growth as marketers and consumers increase their embrace of digital media,” said Randall Rothenberg, president and CEO of the IAB. “The essentially flat performance we see quarter to quarter reflects in part cyclical advertising trends. Compared to the trajectory in other media and in the general economy, interactive has outperformed because it delivers a level of accountability unmatched by any other advertising medium.”
“Due to the unique efficiency and effectiveness of targeted and measurable campaigns, Internet advertising has shown strong growth in the first six months of 2008, compared to the same time period last year. This growth has come in spite of an environment that has put significant pressure on the advertising industry in general.” said David Silverman, partner, Entertainment, Media & Communications Practice, PricewaterhouseCoopers.
The following data highlights key first six-month revenue data breakouts; dollar figures are rounded.
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($ millions if not indicated): |
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Advertising Formats: Search and Display-related ads continue to be leading formats. |
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| 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) | |
| 2% ($200) | 2% ($230) | ||
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Industry Concentration: Percentages of revenues by the top 10, top 25 and top 50 have remained consistent. |
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| FH 2007 | FH 2008 | ||
| Top 10 | 70% | 70% | |
| Top 25 | 82% | 81% | |
| Top 50 | 91% | 90% | |
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Pricing Models: Performance deals continue to be the leading pricing models, followed closely by CPM deals. |
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| FH 2007 | FH 2008 | ||
| Performance Deals | 50%($4997) | 52%($6,007) | |
| CPM | 45%($4497) | 44%($5,026)) | |
| Hybrid | 5%($499) | 4% ($477) | |
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