Internet Ad Revenue At Record High, Up 25% For The Year

Oct 5th, 2007 | By | Category: Making Money with Podcasts

The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) today released the IAB Internet Advertising Revenue Report (pdf) covering the second quarter and the first six months of 2007. Internet advertising revenues (U.S.) for the first six months of 2007 were nearly $10 billion, setting a new record and representing a nearly 27 percent increase over the first half of 2006.

Internet advertising revenue totaled nearly $5.1 billion for the second quarter of 2007, exceeding the $5 billion mark for the first time in a quarter, a 25.4 percent increase over the same period in 2006. Rich media’s portion of the pot grew from 6% of Internet ad revenues last year to 8%.
Here’s the breakdown of where the money’s going:

  • Search – 41% ($4,097)
  • Classifieds – 17% ($1,699)
  • Referrals/Lead Generation – 8% ($799)
  • E-mail – 2% ($200)
  • Display Related: – 32%($3,198)
    • Rich Media (Includes Video) – 8%($799)
    • Ad Banners / Display Ads – 21%($2,099)
    • Sponsorships – 3% ($300)
    • Slotting Fees – <1% (<$1)

“The torrid growth of interactive advertising revenue persists and these results are really no surprise but very welcome news,” said Randall Rothenberg, president and CEO of the Interactive Advertising Bureau. “More and more marketers have embraced the reality that interactive is the fulcrum on which their brand strategies need to be based and we expect robust growth to continue.”

“The first six months of 2007 has continued the trend over the past several years of strong sequential growth,” said David Silverman, partner, Entertainment, Media & Communications Practice, PricewaterhouseCoopers. “The growth, which was led by strong increases in the consumer advertising sector, continues to point to the mainstream acceptance of the medium and advertisers’ continuing reliance on it.”

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