• by Jack Loechner , Staff Writer @mp_research, May 29, 2008

According to the IAB Internet Advertising Report, conducted by PricewaterhouseCoopers, released in May, 2008, Internet advertising revenues in the United States totaled $21.2 billion for the full year 2007. For the fourth consecutive year, revenues posted record results, with total revenues for the 2007 fourth quarter increasing 13 percent from the third-quarter and 24 percent from the 2006 fourth-quarter total. Full year 2007 Internet advertising revenues were up 26 percent versus full year 2006 revenues of $16.9 billion.

Randall Rothenberg, President and CEO, IAB noted that "This achievement is a testament to the continued vitality of interactive. Explosive innovation in the industry is providing marketers with new and unique ways to reach consumers.. "

Consumer-related advertisers accounted for the largest category of revenues at 55 percent of 2007 full year revenues, up from 52 percent from the full year 2006. Financial Services, the second-largest category, accounted for 15 percent, followed by Computing advertisers at 11 percent. Within the Consumer category the biggest sub-categories are Retail at 47 percent of the 2007 full-year consumer ad revenues, followed by Automotive at 21 percent, Leisure (travel, hotel & hospitality) at 13 percent, Entertainment (music, film & TV entertainment) at 9 percent, and Packaged Goods at 8 percent.

David Silverman, Partner, PricewaterhouseCoopers LLP, concludes  "... Interactive advertising is not just the future, it is the here and now... it represents a meaningful and growing component of US advertising and marketing spend."

Search revenue accounted for 41 percent of 2007 full year revenues, up from the 40 percent for the full year 2006. Display advertising, Classifieds, and Lead Generation accounted for 34 percent, 16 percent, and 7 percent of 2007 full year revenues respectively.

Financial Services advertisers represented the second-largest category of spending at 15 percent of 2007 full-year revenues or $3.2 billion, down slightly from the 16 percent reported in the same period of 2006.

Computing advertisers represented the third-largest category of spending at 11 percent of 2007 full-year revenues $2.3 billion, up slightly from the 10 percent reported for the 2006 full-year.

Telecom companies accounted for 8 percent of 2007 full-year revenues or $1.7 billion, consistent with the 8 percent reported in the same period in 2006, while Media accounted for 6percent of 2007 full-year revenues or $1.3 billion, compared with the 6 percent reported for full-year 2006.

The results reported are considered the most accurate measurement of Internet/online advertising revenues, says the summary, because the data is compiled directly from advertising revenues from Web sites, commercial online services, e-mail providers, and other companies selling online advertising.

To learn more about the study, and access the complete (PDF) file, please visit the IAB here.