Commentary
Keyword Search Continues Strong, Rich Media Usage Grows
- by Jack Loechner , Staff Writer @mp_research, April 24, 2004
The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) released the Internet Ad Revenue Report showing that Rich Media advertising and Classifieds experienced healthy year-over-year growth, as overall industry revenues rose nearly twenty-one percent, ending 2003 at just under $7.3 billion.
Thomas E. Hyland, Chair PricewaterhouseCoopers New Media Group, said "We look for the continued evolution of new and effective ad formats to aid in the growth of the sector, as marketers recognize the unique opportunities that are offered in the medium."
The exceptional growth of keyword search, along with the general evolution of the medium, has had a major effect on the types of formats being used by marketers.
| Ad Formats | 2002 | 2003 |
| Display Ads (Banners) | 29% | 21% |
| Sponsorship | 18% | 10% |
| Classified | 15% | 17% |
| Slotting Fees | 8% | 3% |
| Keyword Search | 15% | 35% |
| Interstitial | 5% | 2% |
| 4% | 3% | |
| Rich Media | 5% | 8% |
| Referrals | 1% | 1% |
Source: New Media Group of PricewaterhouseCoopers
In 2003, consumer advertisers continued to lead the way in online advertising spending accounting for 37% of the dollars.
| Ad Categories | 2002 | 2003 |
| Consumer | 32% | 37% |
| Computing | 18% | 20% |
| Financial Services | 13% | 12% |
| Media | 12% | 11% |
| Business Services | 7% | 10% |
Source: New Media Group of PricewaterhouseCoopers
While CPM pricing continues to be the predominant choice for buyers and sellers, a dramatic increase in performance-based deals has come at the expense of hybrid deals.
| Pricing Models | 2002 | 2003 |
| Hybrid | 34% | 20% |
| CPM/Impression | 45% | 43% |
| Performance based | 21% | 37% |
Source: New Media Group of PricewaterhouseCoopers
A copy of the full report is available for download.
Jack Loechner is the Editor of The Center for Media Research's daily Research Brief. You can reach him at jack@mediapost.com.