IAB Reports Online Advertising in 2011 Hit Record High

The Internet Advertising Bureau (IAB) Internet Advertising Revenue Report for the full year 2010 and Q4 2010 both showed record results in the United States. Released in mid-April, and prepared by PwC US, the latest report puts all 2010 Internet advertising revenues at a record $26 billion, up 15% from 2009. Fourth quarter revenue also hit new highs at $7.45 billion, up 19% from Q4 2009 and 15% from Q3 2010.

Highlights of the report include:

• There were record numbers for the yearly advertising revenue as well as record quarterly highs in the Q4 2010.
• The most popular ad format in 2010 was search which represented 46% of revenue and saw 12% growth from last year.
• Sponsorships saw the most growth with an 88% increase over last year and 142% increase in the fourth quarter alone.
• Display-related advertising – which includes Digital Video Commercials, Ad banners/display ads, sponsorships and rich media – continued to grow this year, totaling nearly $10 billion with an increase of 24% over 2009.
• The results exhibit revenue growth for the past five consecutive quarters.
• The Annual Report marks the debut of estimated US mobile ad revenue for 2010: between $550 and $650 million.

“As the latest IAB Internet Advertising Revenue Report amply demonstrates, brand advertisers and marketers have adopted the power of digital media as a central element of their campaigns,” said Randall Rothenberg, President and CEO, IAB. “Consumers have shifted more of their time to digital media – watching television shows and movies online – and advertisers now accept this multifaceted medium as a key component for reaching their targets.”

“With a strong rebound from 2009, the $26 billion spent on Internet advertising points to a continued focus on digital media ad spend, with dollars catching up to the eyeballs. More time spent online, especially with increases in digital video and social media, has certainly helped to fuel the continued growth,” said David Silverman, PwC Assurance partner.

“We now have had five consecutive quarters of growth since the great recession impacted interactive advertising in 2009,” said Sherrill Mane, Senior Vice President, Industry Services, IAB. “The record-breaking revenue in Q4 2010 and the total year indicate that interactive advertising has weathered the storm and then some.”

Here are the results from the full year in comparison with last year’s numbers:

 

Full Year
2009

Full Year
2010

Revenue (Ad Formats)

 

 

Search

47% ($10,698)

46% ($12,004)

Classifieds and Directories

10% ($2,254)

10% ($2,597)

Lead Generation

6% ($1,451)

5% ($1,339)

E-mail

1% ($292)

1% ($195)

Display-related

 

 

    -Digital Video Commercials

4% ($1,017)

5% ($1,420)

    -Ad banners / display ads

22% ($5,061)

24% ($6,230)

    -Sponsorships

2% ($383)

3% ($718)

    -Rich media

7% ($1,505)

6% ($1,538)

        Total display-related

35% ($7,965)

38% ($9,906)

 

 

 

Revenue (Pricing Models)

 

 

Impression-based

37% ($8,355)

33% ($8,589)

Performance-based

59% ($13,412)

62% ($16,198)

Hybrid

4% ($894)

5% ($1,254)

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 advertisements 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.

A copy of the full report is available at: http://www.iab.net/AdRevenueReport