CORRECTING and REPLACING IAB Reports Full-Year Internet Ad Revenues for 2010 Increase 15% to $26 Billion, a New Record

Q4 2010 Revenues Also Increase to New High of $7.4 Billion
With 19% Increase over Q4 2009 and 15% Increase over Q3 2010

CORRECTION…by The Interactive Advertising Bureau (IAB)

NEW YORK--()--The subheadline should read: xxx Q4 2009 and 15% Increase over Q3 2010 (sted xxx Q4 2009 and 16% Increase over Q3 2010). Also, the third sentence of the first paragraph should read: Fourth quarter revenue also hit new highs at $7.45 billion, up 19% from Q4 2009 and 15% from Q3 2010 (sted: Fourth quarter revenue also hit new highs at $7.45 billion, up 16% from Q4 2009 and 19% from Q3 2010)

The corrected release reads:

IAB REPORTS FULL-YEAR INTERNET AD REVENUES FOR 2010 INCREASE 15% TO $26 BILLION, A NEW RECORD

Q4 2010 Revenues Also Increase to New High of $7.4 Billion
With 19% Increase over Q4 2009 and 15% Increase over Q3 2010

The IAB Internet Advertising Revenue Report for the full year 2010 and Q4 2010 both showed record results in the United States. Released today by the Interactive Advertising Bureau (IAB) and prepared by PwC US, the latest report puts all 2010 Internet advertising revenues at a record $26 billion, up 15% from 2009. Fourth quarter revenue also hit new highs at $7.45 billion, up 19% from Q4 2009 and 15% from Q3 2010.

Highlights of the report include:

  • There were record numbers for the yearly advertising revenue as well as record quarterly highs in the Q4 2010.
  • The most popular ad format in 2010 was search which represented 46% of revenue and saw 12% growth from last year.
  • Sponsorships saw the most growth with an 88% increase over last year and 142% increase in the fourth quarter alone.
  • Display-related advertising -- which includes Digital Video Commercials, Ad banners/display ads, sponsorships and rich media – continued to grow this year, totaling nearly $10 billion with an increase of 24% over 2009.
  • The results exhibit revenue growth for the past five consecutive quarters.
  • The Annual Report marks the debut of estimated US mobile ad revenue for 2010: between $550 and $650 million.

“As the latest IAB Internet Advertising Revenue Report amply demonstrates, brand advertisers and marketers have adopted the power of digital media as a central element of their campaigns,” said Randall Rothenberg, President and CEO, IAB. “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.”

“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. More time spent online, especially with increases in digital video and social media, has certainly helped to fuel the continued growth," said David Silverman, PwC Assurance partner.

“We now have had five consecutive quarters of growth since the great recession impacted interactive advertising in 2009,” said Sherrill Mane, Senior Vice President, Industry Services, IAB. “The record-breaking revenue in Q4 2010 and the total year indicate that interactive advertising has weathered the storm and then some.”

Here are the results from the full year in comparison with last year’s numbers:

     

Full Year
2009

   

Full Year
2010

Revenue (Ad Formats)            
Search    

47%
(10,698)

   

46%
(12,004)

Classifieds and Directories    

10%
(2,254)

   

10%
(2,597)

Lead Generation     6% (1,451)     5% (1,339)
E-mail     1% (292)     1% (195)
             
Display-related            
Digital Video Commercials     4% (1,017)     5% (1,420)
Ad banners / display ads    

22%
(5,061)

   

24%
(6,230)

Sponsorships     2% (383)     3% (718)
Rich media     7% (1,505)     6% (1,538)
Total display-related    

35%
(7,965)

   

38%
(9,906)

             
Revenue (Pricing Models)            
Impression-based    

37%
(8,355)

   

33%
(8,589)

Performance-based    

59%
(13,412)

   

62%
(16,198)

Hybrid     4% (894)     5% (1,254)

The IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PwC. The results are considered the most accurate measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertisements 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. 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.

A copy of the full report is available at: http://www.iab.net/AdRevenueReport.

About the IAB:

The Interactive Advertising Bureau (IAB) is comprised of more than 500 leading media and technology companies who are responsible for selling 86% of online advertising in the United States. On behalf of its members, the IAB is dedicated to the growth of the interactive advertising marketplace, of interactive’s share of total marketing spend, and of its members’ share of total marketing spend. The IAB educates marketers, agencies, media companies and the wider business community about the value of interactive advertising. Working with its member companies, the IAB evaluates and recommends standards and practices and fields critical research on interactive advertising. Founded in 1996, the IAB is headquartered in New York City with a Public Policy office in Washington, D.C. For more information, please visit www.iab.net.

About the PwC Network:

PwC firms provide industry-focused assurance, tax and advisory services to enhance value for their clients. More than 161,000 people in 154 countries in firms across the PwC network share their thinking, experience and solutions to develop fresh perspectives and practical advice. See www.pwc.com for more information.

© 2011 PwC. All rights reserved. "PwC" and "PwC US" refer to PricewaterhouseCoopers LLP, a Delaware limited liability partnership, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate and independent legal entity.

Contacts

IAB Media:
Marnie Black, 917-828-7308
marnie@iab.net
or
PwC Media:
Steven Silber, 646-471-4059
Steven.g.silber@us.pwc.com

Sharing

Contacts

IAB Media:
Marnie Black, 917-828-7308
marnie@iab.net
or
PwC Media:
Steven Silber, 646-471-4059
Steven.g.silber@us.pwc.com