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BizNews: Internet Ad Revenues Break Records

Internet Ad Revenues Break Records, Climb to More Than $12 Billion for First Half of '10
Search Remains Strong, Digital Video Soars as Display Gains Momentum—Double-Digit Growth in Online Advertising Is Back

NEW YORK, NY (October 12, 2010) — The Interactive Advertising Bureau (IAB) and PwC US today released the IAB Internet Advertising Revenue Report for the first half of 2010. Internet advertising revenues in the U.S. were at $12.1 billion in that period, setting a new half-year record that represents an 11.3 percent increase over the first half of 2009. This is also the highest second-quarter revenue on record, up 13.9 percent over the same period of 2009.

Display-related advertising—which includes banner ads, rich media, digital video and sponsorships—totaled more than $4.4 billion in the first six months of 2010, showing a significant increase of close to 16 percent over the same period in 2009. Digital video continues to experience record growth, this year achieving the highest half-year performance ever and up 31 percent over first half 2009. Search advertising remains the largest percentage of overall interactive spend at 47 percent, representing more than $5.7 billion for the first six months of 2010, up 11.6 percent from the same period in 2009.

"Consumers' appetite for immersive online experiences is limitless as technological innovation and creativity give rise to new forms of entertainment and information in the digital age," said Randall Rothenberg, President and CEO, IAB. "This report highlights marketers' ongoing adoption of interactive media to build brands—and that's only going to continue."

"Interactive advertising revenue is on a strong upward trajectory," said Sherrill Mane, SVP, Industry Services, IAB. "Nearly all types of ad formats are showing positive movement and marketers across all advertising categories, most notably consumer packaged goods and pharmaceuticals, are increasing their investment in digital media."

"With the strongest first half on record, 2010 has so far indicated that Internet advertising is back, and better than ever," said David Silverman, PwC Assurance partner. "While the recession clearly affected short term growth in 2009, with double digit growth in both search and display during the first six month of 2010, the long term prospects continue to be strong."
The following data highlights key first six-month revenue data breakouts; dollar figures are rounded.
($ millions if not indicated):

Advertising Formats: Search and Display-related ads continue to be leading formats.
FH 2010
FH 2009

Search47% ($5,747)47% ($5,148)
Display Related:36% ($4,356)34% ($3,759)
    -Banner Ads23% ($2,744)22% ($2,394)
    -Rich Media6% ($743)7% ($704)
    -Digital Video5% ($627)4% ($477)
    -Sponsorship2% ($242)2% ($184)
Classifieds10% ($1,262)10% ($1,116)
Referrals/Lead Generation5% ($642)7% ($728)
E-mail1% ($120)1% ($149)

Industry Concentration: Percentages of revenues by the top 10, top 25 and top 50 have remained consistent.
FH 2010
FH 2009

Top 107071
Top 258282
Top 509089

The IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PwC. The results are considered the most accurate measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertising on the Internet. The survey includes data concerning online advertising revenues from Web sites, commercial online services, free e-mail providers, and all other companies selling online advertising. The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first and third quarters. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information.

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