Report: Online Ad Rev At All-Time High, Video Growing At Record Pace

by , Oct 12, 2010, 4:14 PM
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Setting a new industry record, domestic online ad revenue reached $12.1 billion in the first half of the year, according to new findings from the Interactive Advertising Bureau and PwC. Demonstrating strong year-over-year growth, that represents an 11.3% increase over the first half of 2009.

Display-related advertising -- which includes banner ads, rich media, digital video and sponsorships -- totaled more than $4.4 billion in the first six months of 2010, showing a significant increase of close to 16% over the same period in 2009. In particular, digital video continues to experience record growth, this year achieving the highest half-year performance ever, and up 31% over the first half of 2009. Search advertising, meanwhile, remains the largest percentage of overall interactive spend at 47%, representing more than $5.7 billion for the first six months of 2010 -- up 11.6% from the same period in 2009.

"Interactive advertising revenue is on a strong upward trajectory," said Sherrill Mane, SVP of Industry Services at the IAB. "Nearly all types of ad formats are showing positive movement and marketers across all advertising categories, most notably consumer packaged goods and pharmaceuticals, are increasing their investment in digital media."

Online ad revenue in the second quarter was also the highest on record, up 13.9% over the same period of 2009.

"2010 has so far indicated that Internet advertising is back, and better than ever," said David Silverman, PwC Assurance partner. "While the recession clearly affected short-term growth in 2009, with double-digit growth in both search and display during the first six months of 2010, the long-term prospects continue to be strong."

Reflecting strong IAB findings, eMarketer earlier this year increased its projection for the online ad market in 2010 from $23.6 billion to $25.1 billion -- up 10.8% from 2009.

A report released by eMarketer this summer showed eight of 14 forecasters -- including ZenithOptimedia, Magna, JPMorgan and IDC -- predicting double-digit growth this year, with the balance expecting gains in the range of 2% to 9%.

As for its reasoning, eMarketer cited a faster-than-expected uptick in the U.S. economy, with more shopping by consumers and increased marketing spending by companies. Also cited were rebounding ad budgets.

The IAB sponsors IAB Internet advertising revenue reports, which are conducted independently by the New Media Group of PwC.

The surveys include data concerning online advertising revenues from Web sites, commercial online services, free e-mail providers, and all other companies selling online advertising.

1 comment on "Report: Online Ad Rev At All-Time High, Video Growing At Record Pace".

  1. Chris Stinson from Non-Given
    commented on: October 14, 2010 at 8:58 a.m.

    Video is everywhere. You often get it when you are not looking for it or even want it, since many of todays website ads are video. (and too many play automatically). Many, for 'video everywhere on every device' are walking away from their TV sets. I for one, will not. Any method to get pass the bits I don't want (VCR/Tivo/On Demand with FF/Digital Recording), which means the ads, previews, news breaks and other items that takes 15 to 20% of my time, will be used. And I can not do that with most online videos.

    I think once people relize that getting it online, is actuly taking more of their time, they may have second thoughts.

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