US Internet Adspend Jumps By 11% In First Quarter
The US internet advertising industry reported the second consecutive quarterly rise in revenue for the first three months of 2003, up by 11% year on year, according to new estimates from the Internet Advertising Bureau (IAB), compiled by PricewaterhouseCoopers (PwC). This is the first time in two years that two consecutive quarters have shown rising expenditure.
“Advertisers follow the timeless creed of go where your consumers are, and the interactive advertising market is no exception. Consumers are going online in droves and the ad dollars are following closely behind,” claims Greg Stuart, president and CEO of the IAB.
| US Internet Advertising Revenue Trends | ||
| Revenue ($m) | YoY Growth (%) | |
| Q1 2001 | 1,872 | -3% |
| Q2 2001 | 1,848 | -12% |
| Q3 2001 | 1,773 | -10% |
| Q4 2001 | 1,641 | -23% |
| Q1 2002 | 1,520 | -19% |
| Q2 2002 | 1,458 | -21% |
| Q3 2002 | 1,451 | -18% |
| Q4 2002 | 1,580 | -4% |
| Q1 2003 | 1,692 | 11% |
| Source: IAB/PwC | ||
The future for US interactive advertising is on a good footing and is poised for gradual and sustained growth, according to Tom Hyland, a partner in PwC’s New Media Group.
“Many of the factors contributing to last quarter’s up-tick seem to have held momentum, including improved data for advertisers to analyse, as they have now been engaged in the market for a longer period of time,” says Hyland.
According to a consensus of forecasts compiled by MediaTelINSIGHT, US internet adspend will grow by around 6.7% across the whole of 2003. However, the 2003 forecasts range from flat to a rise of 16.0%, as shown.
| US Internet Advertising 2003 Growth Forecasts Comparisons | |
| Growth (%) | |
| Initiative Media (01/03) | 0.0 |
| TNS/CMR (06/03) | 7.4 |
| Merrill Lynch (07/03) | 5.0 |
| Jack Myers Report (05/03) | 16.0 |
| Universal McCann (06/03) | 5.0 |
| Consensus | 6.7 |
| Source: As above/MediaTelINSIGHT | |
For a collection of all the latest advertising growth forecasts, by region and media, click here.