Internet Advertising Revenues Soar Again
June 7, 2007 Figures released by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers today show that Internet advertising revenues continue to skyrocket, the tech wreck of six years ago just an insignificant correction. The 2007 first quarter revenues of US$4.9 billion represent a 26 percent increase over Q1 2006 at US$3.8 billion and a 2 percent increase over Q4 2006 at US$4.8 billion. "The continued growth of online ad revenues clearly illustrates marketers' increased comfort with the extraordinary vitality and accountability of this medium," commented IAB President and CEO Randall Rothenberg. "It reaches consumers with an unprecedented level of efficiency and measurability that provides marketers with actionable data. And the ever-changing landscape of new platforms and technologies that enrich interactive advertising guarantees that this growth trend will continue."
"The recent results are particularly impressive when the size of the advertising revenue base is taken into account," said Peter Petrusky, director, PricewaterhouseCoopers. "Given these results, we may expect continued strong revenue growth buoyed by an expanding broadband subscriber base, which could translate into more users spending more time online and offers a platform for rich media and video ads that dial-up connections can't render."
"The continued growth of internet advertising, on top of the record growth of 2006 and despite advertising's traditional sluggish first quarter, demonstrates the growing significance of interactive advertising to the overall advertising and marketing industry," added David Silverman, partner, Assurance, PricewaterhouseCoopers.
Conducted by the New Media Group of PricewaterhouseCoopers, the "IAB Internet Advertising Revenue Report" was started by the IAB in 1996, and represents data from all companies that report meaningful online advertising revenues. The results are considered the most accurate measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertising on the Internet. The survey includes data concerning online advertising revenues from Web sites, commercial online services, free e-mail providers, and all other companies selling online advertising. First and third quarter revenue reports are estimates, with the actual figures being released along with second and fourth quarter data, respectively. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information.
The IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PricewaterhouseCoopers. The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first and third quarters.
About the IAB
Founded in 1996, the Interactive Advertising Bureau represents over 300 interactive companies responsible for 86% of online advertising revenues in the United States. On behalf of its members, the IAB evaluates and recommends standards and practices; fields interactive effectiveness research, and educates the advertising industry about interactive advertising.