US internet advertising revenues for 2007 are estimated to grow to $21.1 billion, according to preliminary figures from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).
This is a 25% increase over the previous revenue record of nearly $16.9 billion for full year 2006.
Q4 2007 revenues totaled approximately $5.9 billion, making it the highest quarter ever reported and representing a 13% rise over the third quarter of 2007 and a 24% increase over the fourth quarter of 2006..
Randall Rothenberg, president and CEO of the IAB, said: “Interactive media continue their unabated growth. There is no media as measurable as interactive, and they provide products and services at the precise moment a consumer desires them.
“I applaud the industry on maintaining this extraordinary momentum of innovation, which has fundamentally changed the way we live today.”
“The record $21.1 billion year of interactive advertising is the culmination of consecutive record quarters throughout 2007,” said David Silverman, partner, PricewaterhouseCoopers.
“The continued record growth evidences the importance and uniqueness of interactive media to both consumers and the marketers that are trying to reach them.”
Fourth quarter and full-year online ad revenue estimates result from surveying and aggregating data from the top 15 online ad sellers, and then extrapolating those to calculate the total estimated industry revenue figure. Final third and fourth quarter results will be reported in May.
In December, media regulator Ofcom published research revealing that advertisers in the UK spend more money per person on internet advertising than any other country, at £33.
The second annual International Communications Market Report said that this figure is twice as much as France, Germany and Italy combined (see UK Advertisers Spend More Per Person Online Than Any Other Country).
A recent forecast from Yankee Group predicted that the US online advertising market will reach $50.3 billion in revenue by 2011 (see US Online Ad Market To Reach $50.3bn In Revenue By 2011).
The internet accounts for approximately 20% of overall media consumption in the US, said Yankee Group, but advertisers currently invest only 7.5% of their budget online.
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