US internet advertising revenues topped $23 billion in 2008, according to a new report from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC).
The report reveals that full year 2008 revenues totaled a record $23.4 billion, exceeding 2007’s performance, itself the former record of $21.2 billion, by $2.2 billion or 10.6%.
Fourth quarter revenues of $6.1 billion mark the first time the interactive advertising industry achieved, and surpassed, $6 billion in a single quarter. The figures represent a $154 million or 2.6% increase from 2007’s fourth quarter, which had revenues of $5.9 billion.
Randall Rothenberg, president and CEO of the IAB, said: “We are seeing an ongoing secular shift from traditional to online media as marketers recognize that ad dollars invested in interactive media are effective at influencing consumers and delivering measurable results.
“In this uncertain economy, where marketers know they need to do more with less, interactive advertising provides the tools for them to build deep, engaging relationships with consumers – the experience marketers gain from this will deliver dividends especially after the economy turns around.”
Search remains the main driver of revenue growth according to the report, showing a 19.8% increase over 2007. Digital video, though still a small overall contributor, more than doubled its revenue with an increase to $734 million from $324 million in 2007.
| US Internet Ad Revenues |
| |
Full Year 2008 Share of revenue $s (000) |
Full Year 2007 Share of revenue $s (000) |
| Search |
45% ($10,546) |
42% ($8,805) |
| Display Related: |
33% ($7,640) |
33% (7,072) |
| -Banner Ads |
21% ($4,877) |
21% ($4,456) |
| -Rich Media |
7% ($1,642) |
8% ($1,656) |
| -Digital Video |
3% ($734) |
2% ($324) |
| -Sponsorship |
2% ($387) |
3% ($636) |
| Classifieds |
14% ($3,174)) |
16% ($3,321) |
| Referrals/Lead Generation |
7% ($1,683) |
7% ($1,584) |
| E-mail |
2% ($405) |
2% ($424) |
| Source: Interactive Advertising Bureau |
Internet Advertising Bureau figures released in October revealed that UK internet advertising expenditure grew to £1.68 million in the first half of 2008, a 21% year-on-year like-for-like increase (see Internet Advertising Spend Up 21%).
