Slight Decline Year-on-Year to $22.7 Billion, Still A Bright Spot in Media Industry
The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC) today released the IAB Internet Advertising Revenue Report for the full year 2009. Though U.S. Internet advertising revenues, at $22.7 billion for the year, showed a 3.4% decline from 2008, there are signs of an emergent recovery in the industry. The fourth quarter of 2009 hit a record quarterly high of $6.3 billion, a 2.6% increase year-over-year and a 14% increase over the third quarter of 2009.
Highlights of the report include:
- Search and display-related advertising continue to represent the largest percentages of overall interactive advertising spend. Search revenues, comprising 47% of the total, amounted to nearly $10.7 billion for 2009, up slightly from 2008.
- Display-related advertising—which includes display ads, rich media, digital video and sponsorship—totaled nearly $8 billion in 2009, showing an increase of 4% from 2008.
- One component of display-related advertising, digital video, continues to experience robust growth, with an almost 39% increase from 2008 to 2009.
- These latest revenue figures underscore the significant share shift taking place from traditional media to digital. Based on industry data from PwC from 2005 to 2009 in five key U.S. ad-supported media (television, radio, newspapers, consumers magazines and Internet), the Internet’s share of combined ad revenue grew from 8% to 17%.