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.