The Interactive Advertising Bureau – the IAB in the US – and PricewaterhouseCoopers LLP (PwC) this week announced that internet advertising revenues exceeded $5.2 billion for the third quarter of 2007, representing yet another historic high for a quarter and a $1.1 billion increase, or 25.3%, over Q3 2006.
The results are nearly 3% higher than Q2 2007, itself the last record-setting quarter. All three quarters in 2007 have set new highs: Q1 at $4.9 billion, Q2 at $5.1 billion, and now Q3 at $5.2 billion. Revenues for the first nine months of 2007 totalled $15.2 billion, up nearly 26% over the $12.1 billion recorded during the first nine months of 2006.
“The continued robust growth of the industry indicates that marketers increasingly understand and appreciate the benefits of interactive advertising,” said Randall Rothenberg, president and CEO of the IAB. “Marketers large and small have come to accept digital media as the fulcrum of any marketing strategy.”
Peter Petrusky, director, Entertainment, Media & Communications Practice, PricewaterhouseCoopers, added: “Internet advertising revenues are on an annual run-rate exceeding $20 billion, further demonstrating the industry has truly come into its own.
“The emergence of new platforms, including broadband video, rich internet applications, mobile, and social media promise to deliver new benefits for consumers, and create exciting new venues for marketers to realise value in digital media.”
A recent report from eMarketer forecast that US online adspend would more than double as a percentage of total media, rising from a 6% share of total media in 2006, to slightly more than a 12% share in 2010.
In roughly the same period, eMarketer predicts that online spending will nearly treble, rising from $16.9 billion in 2006 to $42 billion in 2011 (see US Online Adspend To More Than Double).
Figures released last month by the Interactive Advertising Bureau and PwC showed that US internet advertising revenues for the first half of 2007 were nearly $10 billion, setting another new record and representing a nearly 27% increase over the first half of 2006 (see US Online Adspend Sets New Record), whilst figures released by the Internet Advertising Bureau (IAB) revealed that UK internet advertising recorded above-expectation 41.3% year on year growth in the first half of 2007 (see UK Internet Advertising Records 41.3% Year On Year Growth).
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