Commentary
Just an Online Minute... Online Ad Revenues to Hit $2 billion
- by August 8, 2000
The Internet Advertising Bureau's (IAB) Internet Ad Revenue Report, conducted independently by PricewaterhouseCoopers also reported that revenues for the first quarter grew 9.9% over the fourth quarter of 1999, and 182% over the comparative first quarter of 1999.
According to the report, the categories which lead online spending during the first quarter were consumer-related (31%), financial services (15%), computing (15%), new media (12%) and business services (10%). The report also found that the overwhelming number of revenue transactions, (94%) continue to be cash-based with barter/trade and packaged deals accounting for 5% and 1% of total revenues respectively.
Banner ads continue to be reported as the predominate type of advertising, accounting for 52% for Q1, sponsorships at 27%, interstitials at 3% and email at 3%. The types of advertising being delineated for the first time include classifieds (4%), referrals (3%), rich media (2%) and keyword searches (1%). All other ad types accounted for 5 % of the total. Reflecting the continuing strength of e-commerce, hybrid deals accounted for 48%, with CPMs or impression-based deals at 42 % and performance-based deals at 10% for the quarter. "What is of prime importance is that we have even greater growth than we had last year with even larger numbers," noted Rich LeFurgy, Chairman of the Internet Advertising Bureau and General Partner of WaldenVC. "While the market correction and subsequent dot.com closures likely had some impact in slowing growth in the second quarter, the continued and growing numbers of large traditional advertisers expanding their budgets for Internet campaigns are really the news here. Time will tell what effect, if any, recent developments will have on the growth of online advertising."
