US internet advertising revenue declined by 9.8% year on year in the final quarter of 2003, with spend coming in at $1.5 billion, according to the latest figures from the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers. This represents a slight growth of 2.0% over the third quarter of the year.
The top-line figures show that across the whole of 2002, US online adspend totalled $6.0 billion; this is down 17.0% on 2001. The data are compiled from the top 15 online ad sellers – accounting for approximately 80% of the total market – and the results are then adjusted to give an overall figure.
Whilst Q4 continues to show a year on year decline, the rate of decline has now fallen into single digits, notes the IAB.
“The improved performance over the past two quarters reflects a stabilising online advertising market, highlighted by continued strength in paid-for-search results. The recent upturn, coupled with forecasts of continued expansion of broadband distribution, bodes well for a strong year in 2003,” says Tom Hyland at PricewaterhouseCoopers New Media Group.
Greg Stuart, president and CEO at the IAB, says that the figures reflect accurately the conditions of a volatile advertising and macro economy. He claims that in such conditions an inflated market would be detrimental to the sector and that a “mature, level and stable platform, where revenue fluctuations are even with the rest of the advertising business” is preferable.
The full report, released next month, will feature adjusted figures, with data break-out information. The 2001 data can be seen US Internet Ad Revenue Falls 12% In 2001.
