Internet Advertising Revenues Surpass $23 Billion in ’08,
Reaching Record High
Q4 '08 Revenues Total $6.1 Billion; Growth Continues Despite
Difficult Economy
NEW YORK--(BUSINESS WIRE)--Internet advertising revenues in the U.S. remain strong, topping
$23 billion, according to the 2008 Internet Advertising Revenue Report,
released today by the Interactive Advertising Bureau (IAB)
and PricewaterhouseCoopers LLP (PwC). Despite a difficult U.S. economy,
interactive advertising’s continued growth, albeit at a slower pace,
confirms marketers' increased recognition of the medium’s value in
reaching consumers online where they are spending more and more of their
time.
-
Full-year 2008 revenues totaled a record $23.4 billion,
exceeding 2007’s performance, itself the former record of $21.2
billion, by $2.2 billion or 10.6%. By comparison, a variety of sources
indicate weakness in overall advertising spending. The Nielsen
Company, for example, reported that U.S. advertising for the full year
2008 was down 2.6% compared to the full year 2007.
-
Fourth-quarter revenues of $6.1 billion mark the first time the
interactive advertising industry achieved, and surpassed, $6 billion
in a single quarter. The figures represent a $154 million or 2.6%
increase from 2007’s fourth quarter, which had revenues of $5.9
billion.
-
This is the fifth consecutive year of record results.
“We are seeing an ongoing secular shift from traditional to online
media as marketers recognize that ad dollars invested in interactive
media are effective at influencing consumers and delivering measurable
results,” said Randall Rothenberg, president and CEO of the IAB. “In
this uncertain economy, where marketers know they need to do more with
less, interactive advertising provides the tools for them to build deep,
engaging relationships with consumers—the experience marketers gain from
this will deliver dividends especially after the economy turns around.”
Search remains the main driver of revenue growth according to the
report, showing a 19.8% increase over 2007. Digital video, though still
a small overall contributor, more than doubled its revenue with an
increase to $734 million from $324 million in 2007, demonstrating how
both marketers and consumers are embracing this dynamic platform.
As in 2007, retail, financial services, computing and automotive
remained the four largest verticals among Internet advertisers in 2008.
Consumer packaged goods, an industry vertical historically slow to
embrace interactive advertising, notably increased its share of total
Internet ad revenues by 60 percent over 2007. The Internet is now the
third largest ad-supported medium, marking its increasing significance
to marketers and consumers.
“Though some categories in the fourth quarter slowed or even
dipped, reflecting the current economic challenges, the overall
performance is up, confirming interactive’s ever-growing importance to
the successful marketing mix,” said David Silverman, Partner, Assurance,
PricewaterhouseCoopers.
The following chart highlights full-year revenue data breakouts;
dollar figures are rounded.
|
|
FY 2008
Share of revenue
$’s (000)
|
FY 2007
Share of revenue
$’s (000)
|
|
Search
|
45% ($10,546)
|
42% ($8,805)
|
|
Display Related:
|
33% ($7,640)
|
33% ($7,072)
|
|
-Banner Ads
|
21% ($4,877)
|
21% ($4,456)
|
|
-Rich Media
|
7% ($1,642)
|
8% ($1,656)
|
|
-Digital Video
|
3% ($734)
|
2% ($324)
|
|
-Sponsorship
|
2% ($387)
|
3% ($636)
|
|
Classifieds
|
14% ($3,174)
|
16% ($3,321)
|
|
Referrals/Lead Generation
|
7% ($1,683)
|
7% ($1,584)
|
|
E-mail
|
2% ($405)
|
2% ($424)
|
Conducted by the New Media Group of PricewaterhouseCoopers LLP,
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, ad networks, 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.
A copy of the full report is available at: http://www.iab.net/AdRevenueReport
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 154,000 people in 153 countries across our network share their
thinking, experience and solutions to develop fresh perspectives and
practical advice.
About the IAB:
The Interactive Advertising Bureau (IAB) is comprised of more than
375 leading media and technology companies who are responsible for
selling 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
educates marketers, agencies, media companies and the wider business
community about the value of interactive advertising. Working with its
member companies, the IAB evaluates and recommends standards and
practices and fields critical research on interactive advertising.
Founded in 1996, the IAB is headquartered in New York City with a Public
Policy office in Washington, D.C. For more information, please visit www.iab.net.
IAB Media Contact:
Marla Aaron, 212-380-4714
marla@iab.net
PricewaterhouseCoopers
Media Contact:
Steven Silber, 646-471-4059
steven.g.silber@us.pwc.com
or
Linden
Alschuler & Kaplan for PricewaterhouseCoopers:
Suzanne Dawson,
212-329-1420
sdawson@lakpr.com
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