2008 – Internet Advertising Revenue

For all the Internet Marketing professionals who missed out on the Ad Revenue report published by IAB, here is a link for you IAB PwC 2008 full year report

Some of the key highlights of the year 2008 are:

Total 2008 fourth-quarter revenues were $154 million (2.6 percent) higher than the fourth quarter of 2007, and $263 million (4.5 percent) higher than the third quarter of 2008

Annual revenues for 2008 totaled $23.4 billion, $2.2 billion or 10.6 percent higher than reported for 2007 Second and third quarter of 2008 saw a decline in revenue, something last observed only in 3rd quarter of 2004, however it recovered in the 4th quarter, maintaining the year on year growth

Online revenue collection is majorly dominated by top 10 ad-selling companies together accounted for 72 percent of total revenue

Search revenues dominance grew further from 41 percent in 2007 to 45 percent in 2008
Other than Computing, telecom, Consumer Packaged Goods all other industry (Retail, Financial Services, Automotive, Leisure Travel, Media, Enetrtainment & Pharma) either did not see an increase or a fall in their share of online advertising spents

Ideally online advertising can be distributed into 3 categories, Performance based pricing, CPM or impression based or hybrid basis. Approximately 57 percent of 2008 full year revenues were priced on a performance basis, up from 51 percent reported in 2007 with CPM loosing its share from 45 percent in 2007 to 39 percent in 2008

All in all, when we look at these numbers (derived from servey in US), Internet Advertising is again number one in terms of the growth ration compared to all other mediums of advertising..

Cheers

Pankaj J