Internet Advertising Revenues Top $21 Billion in ’07,
Reaching Record High
Q4 '07 Revenues Total $5.9 Billion; Unabated Growth Defies Other
Economic Trends
NEW YORK (Business Wire EON) May 15, 2008 --
The Interactive Advertising Bureau (IAB)
and PricewaterhouseCoopers LLP (PwC) today announced that the 2007
Internet Advertising Revenue Report shows Internet advertising revenues
in the U.S. continued their upward climb.
-
For the full year 2007, revenues totaled $21.2 billion, exceeding 2006
performance by 26%, itself the former record year.
-
Q4 2007 Internet advertising revenues hit $5.9 billion, representing
historic revenues for a single quarter and a 24% increase over the
same period in 2006.
-
This is the fourth consecutive year and 13th consecutive quarter of
record results.
“This achievement is a testament to the
continued vitality of interactive,” said
Randall Rothenberg, president and CEO of the IAB. “Explosive
innovation in the industry is providing marketers with new and unique
ways to reach consumers—it’s
a very exciting time.”
Search, display, classifieds and lead generation all continued growing
at a healthy rate, according to the report. Consumer advertisers
remained the largest category of Internet advertising spending, at 55%
of 2007 full-year revenues, up from 52% from the full year 2006.
“Despite the current state of economic
uncertainty, 2007 was another record year and the 13th consecutive
record quarter. Interactive advertising is not just the future, it is
the here and now, as it represents a meaningful and growing component of
U.S. advertising and marketing spend,” said
David Silverman, partner, Assurance, PricewaterhouseCoopers.
|
ADVERTISING FORMATS
|
|
2007
|
|
2006
|
|
Type of Advertising
|
|
$
|
|
% share
of market
|
|
$
|
|
% share
of market
|
|
Display Advertising
|
|
4,455
|
|
21%
|
|
3,685
|
|
22%
|
|
Sponsorship
|
|
636
|
|
3%
|
|
496
|
|
3%
|
|
Rich Media (06 including Broadband Video)
|
|
1,657
|
|
8%
|
|
1,192
|
|
7%
|
|
Digital Video (07 only)
|
|
324
|
|
2%
|
|
|
|
|
|
All Display
|
|
7,072
|
|
34%
|
|
5,373
|
|
32%
|
|
Keyword Search
|
|
8,805
|
|
41%
|
|
6,799
|
|
40%
|
|
Classifieds
|
|
3,321
|
|
16%
|
|
3,059
|
|
18%
|
|
E-mail
|
|
424
|
|
2%
|
|
338
|
|
2%
|
|
Lead Generation*
|
|
1,584
|
|
7%
|
|
1,310
|
|
8%
|
|
TOTALS:
|
|
21,206
|
|
100%
|
|
16,879
|
|
100%
|
|
INDUSTRY CONCENTRATION
|
|
|
|
|
|
FY 2007
|
|
FY 2006
|
|
Top 10
|
|
69% ($14,632)
|
|
69% ($11,647)
|
|
Top 25
|
|
80% ($16,965)
|
|
82% ($13,841)
|
|
Top 50
|
|
89% ($18,873)
|
|
92% ($15,529)
|
|
PRICING MODELS
|
|
|
|
|
|
|
|
FY 2007
|
|
FY 2006
|
|
CPM or Impression
|
|
45% ($9,492)
|
|
48% ($8,102)
|
|
Performance Deals
|
|
51% ($10,817)
|
|
47% ($7,933)
|
|
Hybrid
|
|
4% ($897)
|
|
5% ($844)
|
Conducted by the New Media Group of PricewaterhouseCoopers, the Internet
Advertising Revenue Report was launched in 1996 by the IAB, and
aggregates data from all companies that report meaningful online
advertising revenues. The results are considered the most accurate
measurement of interactive advertising revenues with the data 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. First and
third quarter revenue reports are estimates, with the actual figures
being released along with second and fourth quarter data respectively.
PwC does not audit the information and provides no opinion or other form
of assurance with respect to the information.
For a copy of the full report click here.
The IAB sponsors the Internet Advertising Revenue Report, which is
conducted independently by the New Media Group of PwC. The full report
is issued twice yearly for full and half-year data, and top-line
quarterly figures are issued for the first and third quarters.
About PricewaterhouseCoopers:
PricewaterhouseCoopers (www.pwc.com)
provides industry-focused assurance, tax and advisory services to build
public trust and enhance value for its clients and their stakeholders.
More than 146,000 people in 150 countries across our network share their
thinking, experience and solutions to develop fresh perspectives and
practical advice.
PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP or, as the
context requires, the PricewaterhouseCoopers global network or other
member firms of the network, each of which is a separate and independent
legal entity.
About the IAB:
Founded in 1996, the Interactive Advertising Bureau (www.iab.net)
represents over 375 leading interactive companies that actively engage
in and support the sale of interactive advertising. IAB members are
responsible for selling over 86% of online advertising in the United
States. On behalf of its members, the IAB is dedicated to the growth of
the interactive advertising marketplace, of interactive’s
share of total marketing spend, and of its members’
share of total marketing spend. The IAB evaluates and recommends
standards and practices, fields interactive effectiveness research, and
educates marketers, agencies, and media companies, as well as the wider
business community, about the value of interactive advertising.
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