US internet ad revenues down 5.3%
US internet advertising revenues were down 5.3% to $10.9 billion in the first half of 2009, according to new figures from the Interactive Advertising Bureau and PricewaterhouseCoopers.
Search revenues were up slightly year on year to $5.1 billion in the first half, while display-related advertising – including display rich ads, rich media, digital video and sponsorship – totaled almost $3.8 billion in the first six months of 2009, down 1.1% on H1 2008.
Digital video continues to experience robust growth with a 38% increase from the first half of 2008, the research found.
Recent data from the comScore Video Metrix service revealed that 161 million US internet users watched online video in August – the largest audience ever recorded.
Randall Rothenberg, president and CEO of the IAB, said: “We are in one of the most difficult economic slumps in decades. Interactive is one of the advertising sectors that has been least affected.
“In recent years the digital revolution has driven a transformation of how consumers experience advertising and media. As the economy improves, we’re confident that brands will devote an even greater share of their budgets to reaching consumers as they make interactive media a larger part of their lives.”
David Silverman, PwC Assurance partner, said: “While the overall advertising market has continued to be impacted by current economic conditions, marketers are allocating more of their dollars to digital media for its accountability and because consumers are spending more of their leisure time online.”
GroupM recently forecast that internet advertising will account for about 15% ($64.7 billion) of global measured adspend in 2010, up from an expected 13% this year.
($ millions if not indicated) Advertising Formats: Search and Display-related ads continue to be leading formats.
| FH 2009 | FH 2008 | |
|---|---|---|
| Search | 47% ($5,148) | 44% ($5,064) |
| Display Related | 34% ($3,759) | 33% ($3,799) |
| banner ads | 22% ($2,394) | 21% ($2,418) |
| rich media | 7% ($704) | 7% ($806) |
| digital video | 4% ($477) | 3% ($345) |
| sponsorship | 2% ($184) | 2% ($230) |
| Classifieds | 10% ($1,116) | 14% ($1,611) |
| Referrals/Lead Generation | 7% ($728) | 7% ($806) |
| 1% ($149) | 2% ($230) |
Industry Concentration: Percentages of revenues by the top 10, top 25 and top 50 have remained consistent.
| FH 2009 | FH 2008 | |
|---|---|---|
| Search | 47% ($5,148) | 44% ($5,064) |
| Display Related | 34% ($3,759) | 33% ($3,799) |
| banner ads | 22% ($2,394) | 21% ($2,418) |
| rich media | 7% ($704) | 7% ($806) |
| digital video | 4% ($477) | 3% ($345) |
| sponsorship | 2% ($184) | 2% ($230) |
| Classifieds | 10% ($1,116) | 14% ($1,611) |
| Referrals/Lead Generation | 7% ($728) | 7% ($806) |
| 1% ($149) | 2% ($230) | |
| FH 2009 | FH 2008 | |
| Top 10 | 77% | 70% |
| Top 25 | 82% | 81% |
| Top 50 | 89% | 90% |
Pricing Models: Performance deals continue to be the leading pricing models, followed closely by CPM deals.
| FH 2009 | FH 2008 | |
|---|---|---|
| Performance Deals | 58% ($6,636) | 54% (%6,260) |
| CPM | 38% ($4,059) | 42% ($4,750) |
| Hybrid | 4% ($478) | 4% ($500) |