US Internet Ad Revenues Marked $15 billion in First Half of 2011 – IAB Report

As per the IAB Internet Advertising Revenue Report of 2011, the internet ad revenues of the United States marked $15 billion in the first half of 2011. The Internet Advertising Bureau (IAB) sponsored this report, which is conducted by the internet media group of PricewaterhouseCoopers (PwC), US. The online ad revenues in the first quarter accounted to $7.3 billion and in the second quarter the revenues were $7.7 billion. The online ad revenues for the first six months experienced 23% increase over 2010.

There was a growth of online search and display advertising in the country. Search advertising accounted for about 49% constituting $7.2 billion of the online ad revenues of the first six months. Display advertising that includes banner ads, digital video, rich media and sponsorship accounted about 37% of the internet ad revenues in the first half of the year. Online display ads totaled more than $5.5 billion and banner ads constituted the highest revenues (23% accounting $3.4 billion) among the other types of display ads.

Digital video, a component of display advertising, increased 42% from 2010 to 2011 and represented 6% of the overall year-to-date revenues. Each of online search and display advertising grew about 27% year-over-year, however, the search advertising in the first half of 2011 had more than doubled its previous year’s growth rate of 11.6 percent.

Following the search and display advertising modes were classifieds accounting 8%, referrals or lead generation accounting 5% and e-mail accounting 1% of the online ad revenues of the first half of the year in US. Apart from the growth of online search and display advertising, amount spent on lead generation also increased 25.4 percent over the same period in 2010. However, classified ad dollars decreased 2 percent.

Under the consideration of revenue pricing models, ads using performance-based models increased to $9.6 billion. This increase was much faster than ads using impression-based models. It was evident from the figures of the report that there had been a strong online advertising growth in the United States this year. The ability of advertisers to correlate performance and results with the investment was found to fuel this growth.