Internet Ad Revenue Up 15.2% in First Half of 2008

Internet advertising revenues for the first six months of 2008 were $11.5 billion, setting a new half-year record that reps a 15.2% increase over the first half of 2007, according to recently released data from The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers, writes MarketingCharts. The IAB Internet Advertising Revenue Report also shows a 2nd-Q increase of 12.8% over the 2nd-Q 2007 and shows a slight decline of 0.3% from the 1st-Q. Search- and display- related advertising also reached all-time highs. Search revenues totaled nearly $5.1 billion for the 1st half 2008, up 24% from $4.1 billion for the 1st half in 2007. Display-related advertising totaled nearly $3.8 billion for 1st half 2008, compared to $3.2 billion for the 1st half in 2007, roughly a 19% increase. Display-related advertising includes display banner ads, rich media, digital video, and sponsorship.

Other data issued by IAB/PwC:

• Pricing models. Performance deals continue to be the leading pricing models, followed closely by CPM deals (dollar amounts in millions):

• Industry concentration. Percentages of revenues by the top 10, top 25 and top 50 ad-selling companies have remained consistent from last year:

The president and CEO of the IAB said interactive advertising continues to demonstrate year-over-year growth as marketers and consumers increase their embrace of digital media. The essentially flat performance they see quarter to quarter reflects in part cyclical advertising trends.