April 14, 2011

US Online Ad Revenues Reach Record High In 2010

U.S. Internet advertising revenue rose 15 percent to $26 billion in 2010, a record high, according to new figures released Wednesday by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).

The previous record was in 2008, when full-year revenue reached $23.4 billion.

Online ad revenues also jumped 19% during the fourth quarter of 2010, to a record high of $7.5 billion, as more companies invest money in reaching potential customers online.

Search advertising accounted for $12 billion, or 46 percent, of total online ad revenue last year.  Meanwhile, display-related advertising, which includes rich media, digital video and banner ads, reached $9.9 billion, or 38 percent of total online ad revenue, according to the IAB and PwC report.

The third-largest Internet ad category is classifieds, which accounted for $2.6 billion, or 10 percent, of total 2010 ad revenue.

This year was the first year the IAB and PwC report provided an estimate for U.S. mobile advertising revenue, saying it had reached between $550 million and $650 million for 2010.

"With a strong rebound from 2009, the $26 billion spent on Internet advertising points to a continued focus on digital media ad spend, with dollars catching up to the eyeballs," said PwC partner David Silverman.

U.S. online ad revenue declined three percent in 2009 compared with 2008, the first annual decline since 2002.

"Consumers have shifted more of their time to digital media -- watching television shows and movies online -- and advertisers now accept this multifaceted medium as a key component for reaching their targets," said IAB president and chief executive Randall Rothenberg said.

The full IAB report can be viewed at http://www.iab.net/insights_research/947883/adrevenuereport.