Online Ad Revenues On the Rise

The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers released their latest Internet advertising numbers for the third quarter. According to the organizations, Internet advertising revenues reached nearly $5.5 billion for the quarter. That is an increase of 1.7% from the second quarter.

The numbers are still significantly down from the same period last year, but any increase is a good sign of things to come. There has been a 5.4% decline from last year.

"The Internet has transformed the consumer experience of media, providing marketers with unprecedented opportunities to engage with their customers," said Randall Rothenberg, President and CEO of the IAB. "The advertising sector overall has been hard hit by the economy, but digital media has been a bright spot within the larger economic downturn as it is capturing an ever-increasing piece of marketers’ advertising spend."

"While all segments of the media industry have experienced declines, online advertising remains resilient and is once again showing signs of growth," said David Silverman, a partner at PricewaterhouseCoopers LLP.

The information from the IAB/PWC is considered the most accurate measurement of interactive ad revenue, the IAB says, because its compiled directly from info supplied by companies selling advertising on the web. The IAB releases a full report twice a year to reflect half-year periods. It will be interesting to see how the second half of the year plays out in its entirety.

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Online Ad Revenue Tops $10 Billion

Internet advertising revenues reached $10.9 billion in the first half of 2009, a 5 percent decline from the same time in 2008, according to a new report from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers.

Search and display advertising continue to account for the largest percentages of overall advertising spend.  Search revenues amounted to more than $5.1 billion for the first six months of 2009, up three percent from the same period in 2008.

"While the overall advertising market has continued to be impacted by current economic conditions, marketers are allocating more of their dollars to digital media for its accountability and because consumers are spending more of their leisure time online," said David Silverman, PwC Assurance partner.

Display-related advertising which includes rich media, digital video and sponsorship totaled nearly $3.8 billion in the first six months of 2009 showing a slight decline from the same time in 2008. Digital video continues to see solid growth with a 38 percent increase from the first half of 2008.

"We are in one of the most difficult economic slumps in decades. Interactive is one of the advertising sectors that has been least affected," said Randall Rothenberg, President and CEO of the IAB.

"In recent years the digital revolution has driven a transformation of how consumers experience advertising and media. As the economy improves, we're confident that brands will devote an even greater share of their budgets to reaching consumers as they make interactive media a larger part of their lives."
 

Online Ad Spending Dips 5% In Q2

Global spending on Internet advertising declined for the second consecutive quarter, by 5 percent, to $13.9 billion from $14.7 billion in the same quarter a year ago, according to a new report from IDC.

All global regions posted losses, except for the Asia/Pacific region and Japan, which saw slight gains in the second quarter. U.S. online ad spending also dropped for the second quarter in a row, by 7 percent year- over- year, to $6.2 billion from $6.6 billion.

In the United States, all major advertising formats saw year-over-year revenue losses, with search ads being least affected, display ads losing 12 percent, and classifieds down 17 percent.

All major publishers' ad sales declined, for the most part at double-digit rates, with Google being the only exception, posting single digit growth. Hardest hit was Monter.com with a 31 percent decline and AOL, affected by both weakness in display ads as well as internal sales problems.

For the coming quarters IDC says there is good news and bad news. The bad news is U.S. advertisers will likely decrease their online spending quarter over quarter in 3Q09 by about the same amount as they did in the previous quarters of this year. The good news is things are not going to get any worse in the Internet ad industry.

"We think the industry will continue to see losses in the third and fourth quarters, but the growth rates - or the loss rates, if you will - will eventually begin to improve. However, we also believe the industry may have to wait until mid-2010 until it sees real growth again," said Karsten Weide, program director, Digital Media and Entertainment at IDC.

Make Sense of Google AdSense – and make money!

As a successful web publisher looking to get to the next level, you are probably thinking about trying a number of different approaches to increasing revenue – especially your passive revenue, the money that just “shows up” from time to time while you focus on other things. You may be considering various forms of internet advertising. And you should.
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