Net advertising revenue up but slowing
Agence France-Presse
First Posted 09:40:00 10/08/2008
Filed Under: Internet, Advertising, Earnings
WASHINGTON -- Online advertising revenue in the United States hit a record $11.5 billion in the first six months of the year but slowed in the second quarter, according to a survey released Tuesday.
The Interactive Advertising Bureau and PricewaterhouseCoopers said Internet advertising revenues rose 15.2 percent in the first six months of 2008 over the first half of 2007.
Online advertising revenue was up 12.8 percent in the second quarter over the same period of 2007 but declined 0.3 percent from the first quarter of the year, from $5.8 billion to $5.7 billion, the IAB-PwC survey said.
It was the second consecutive quarter of decline, coming after a fourth quarter of 2007 when online advertising hit $5.9 billion.
IAB chief executive Randall Rothenberg attributed the dip in the second quarter of 2008 to cyclical factors and the sluggishness of the economy in general.
"Interactive advertising continues to demonstrate year over year growth as marketers and consumers increase their embrace of digital media," Rothenberg said.
"The essentially flat performance we see quarter to quarter reflects in part cyclical advertising trends," he said. "Compared to the trajectory in other media and in the general economy, interactive has outperformed."
"This growth has come in spite of an environment that has put significant pressure on the advertising industry in general," added David Silverman of PricewaterhouseCoopers.
Search advertising revenues totaled nearly $5.1 billion in the first six months of 2008, up 24 percent from $4.1 billion for the same period in 2007, the survey found.
In search advertising, advertisers pay Internet companies to list or link their company site domain name to a specific search word or phrase.
Display-related advertising totaled nearly $3.8 billion in the first six months of 2008, compared to $3.2 billion in the same period in 2007, IAB-PcW said. Display-related advertising includes banner ads, rich media, digital video and sponsorship.
Classified advertising accounted for $1.61 billion in the first six months of 2008, down five percent from $1.69 billion in the first six months of 2007.
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