Web Ad Revenues At $17 B in First Half Set Record
According to the IAB Internet Advertising Revenue Report by the Interactive Advertising Bureau and Pwc US, internet advertising revenues climbed to an all-time high of $17 billion, in the first half of 2012, representing a year-over-year 14% increase.
Highlights of the report include:
- Mobile generated significant growth, up 95% to $1.2 billion in the 1st half of 2012 from $636 million in the comparable 2011 period
- Digital video, a component of display-related advertising, saw an increase of 18% year-over-year, bringing in a little over $1 billion in revenue in the first two quarters of 2012 compared to nearly $900 million in the first six months of 2011
- Search revenues in the first half of the year totaled $8.1 billion, up 19% from nearly $6.8 billion during the same timeframe in 2011
- Display-related advertising revenues in the first half of the year totaled almost $5.6 billion, accounting for 33% of 2012 half-year revenues, up 4% from $5.3 billion in the first half of 2011
- Retail advertisers constitute the largest category of internet ad spending for the first half of this year, claiming 20% of the total revenues at $3.4 billion, while Automotive brought in $2.2 billion for first-half 2012, marking an uptick to 13% versus 11% of category spend reported for half-year 2011 at $1.7 billion
Randall Rothenberg, President and CEO, IAB, says that “... this report establishes that marketers increasingly embrace mobile and digital video (and) interactive platforms... on the heels of a study from Harvard Business School... that points to the ad-supported internet ecosystem as a critical driver of the U.S. economy... “
| Half-Year Internet Ad Revenue Since 2008 | ||
| 1st Half of Year | Revenue ($ in Millions) | % Growth |
| 2012 | $17,028 m | 14% |
| 2011 | $14,941 | 23% |
| 2010 | $12,127 | 11% |
| 2009 | $10,900 | -5% |
| 2008 | $11,510 | 15% |
| Source: IAB/PwC, October 2012 | ||
David Silverman, a partner at PwC US, says “... bringing the power of the Internet to mobile devices has opened up a world of possibilities to both consumers and marketers...”
| Internet Ad Revenues (% Share of Total) | ||
| Industry |
1st Half 2011 | 1st Half 2012 |
| Retail | 23% | 20% |
| Financial services | 13 | 13 |
| Auto | 11 |
13 |
| Telecom | 14 | 12 |
| Computing products | 10 | 8 |
| Leisure travel | 8 | 8 |
| Pharma & healthcare | 4 | 6 |
| CPG | 6 | 5 |
| Mediapost | 4 | 4 |
| Entertainment | 4 | 4 |
| Source: IAB/PwC, October 2012 | ||
Sherrill Mane, Senior Vice President, Research, Analytics and Measurement, IAB, observes that “... double-digit growth in a stagnating economy is a significant accomplishment... CPMs are maintaining, and even increasing, further substantiating the vitality of the internet ad market... ”
| Ad Category Breakouts (in millions) | ||
|
| 1st Half 2012 | |
|
| Percent of Total | $ in Millions |
| Search | 48% | $8,128 |
|
Display Related | 33% | $5,586 |
| -Banner Ads | 21% | $3,622 |
| -Digital Video Commercials | 6% | $1,053 |
| -Rich Media | 3% | $495 |
| -Sponsorship | 2% |
$416 |
| Mobile* | 7% | $1,242 |
| Classifieds | 7% | $1,160 |
| Referrals/Lead Generation | 5% | $834 |
| | 0% | $78 |
| Source: IAB/PwC, October 2012 | ||
For additional details from the report, please visit the IAB here.
JACK LOECHNER
Center for Media Research
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