Internet Advertising Revenues Hit $7.3 Billion: Report

Internet
advertising revenues in the United States hit $7.3 billion for the first
quarter of 2011, representing a 23 percent increase over the same period in
2010, according to figures released by the Interactive Advertising Bureau and
PwC. This marks the highest first-quarter revenue level ever for the industry
and a “significant increase” over last year’s first-quarter revenue level,
which had been the highest on record to date.

“The
consistent and considerable year-over-year growth we’re seeing demonstrates
that digital media is an increasingly popular destination for ad dollars, and
for good reason,” said Randall Rothenberg, president and CEO of the IAB. “As
Americans spend more time online for information and entertainment purposes,
digital advertising and marketing has emerged as one of the most effective
tools businesses have to attract and retain customers.”

David
Silverman, a partner at PwC, said the year-on-year 23 percent increase in first-quarter
revenues is not just impressive in its own right, but especially so when you
take into account the fact that 2010 was a record-breaking year itself for
Internet advertising revenue. “These numbers indicate that the interactive
advertising field hasn’t simply bounced back since the recession; it’s growing
with dynamic energy.”

The
survey includes data concerning online advertising revenues from Websites,
commercial online services, free email providers and all other companies
selling online advertising. 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. 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 PwC. The results are considered an
accurate measurement of interactive advertising revenues because the data is
compiled directly from information supplied by companies selling advertising on
the Internet.

The
IAB comprises more than 500 media and technology companies that are responsible
for selling 86 percent of online advertising in the United States. Working with
its member companies, the IAB evaluates and recommends standards and practices
and fields critical research on interactive advertising.

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