Internet Ad Revenue Up 15%, IAB Says

Latest report reveals a record $26 billion for 2010
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The Interactive Advertising Bureau has issued its latest Internet Advertising Revenue Report, which paints a positive picture of that industry’s figures.

According to the report, Internet advertising for the year 2010 increased 15% to reach a grand total of $26 billion, a new record. Quarterly increases were equally impressive, with Q3 up 15% and Q4 up 19% for a new high of $7.45 billion. Ad revenues have grown for the last five consecutive years.

Search proved to be the most popular ad format, receiving 46% of total revenue and up 12% from 2009. The highest growth was experienced by sponsorship-related ads at 88% for the year, with Q4 alone seeing an increase of 144%. U.S. mobile ad revenue for 2010 was estimated to lie somewhere between $550 and $650 million.


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 report was prepared by PwC US.

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