Commentary

Internet Ad Revenues Cheat Sheet

Though it has been reviewed and editorialized, here are a few selected year-end Internet ad metrics for a quick reference in the desk drawer. The IAB 2008 Internet Advertising Revenue Report shows that the full-year 2008 revenues totaled $23.4 billion, exceeding 2007 by $2.2 billion or 10.6%, while all US advertising for 2008 was down 2.6% compared to 2007. And, fourth quarter revenues of $6.1 billion mark the first time the interactive advertising industry achieved, and surpassed, $6 billion in a single quarter.

Search continues as the main driver of revenue growth, showing a 19.8% increase over 2007. Digital video more than doubled its revenue with an increase to $734 million from $324 million in 2007.

Retail, Financial Services, Computing, and Automotive remained the four largest verticals among Internet advertisers in 2008. Consumer packaged goods increased its share of total Internet ad revenues by 60% over 2007. The Internet is the third largest ad-supported medium.

Randall Rothenberg, president and CEO of the IAB, concludes that "... marketers know they need to do more with less... interactive advertising provides the tools for them to build deep, engaging relationships with consumers... "

Full-Year Revenue Data Highlights  (Dollar Figures Are Rounded)

 

FY 2008 Share Of Revenue

'08 Revenue $'s (000)

 FY 2007 Share Of Revenue

'08 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: IAB/PriceWaterhouseCoopers, March 2009

The release is available here, and the full report here.

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