Internet Ad Revenue Hits $17 Billion in First Half 2012, Up 14 Percent

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In the first half of 2012, internet advertising revenues climbed to an all-time high of $17 billion, representing a 14 percent increase year-over-year, according to IAB Internet Advertising Revenue Report released today by the Interactive Advertising Bureau and prepared by PwC US. In the first half of 2011, internet revenue was $14.9 billion.

Also marking a 14 percent year-over-year increase, second quarter internet ad revenues for this year hit $8.7 billion, up from $7.7 billion during the same time period in 2011.

Highlights of the report include:

  • Mobile generated significant growth - almost doubling year-over-year figures - up 95 percent to $1.2 billion in half-year 2012 from $636 million the comparable period in 2011
  • Digital video, a component of display-related advertising, saw an increase of 18 percent year-over-year, bringing in a little over $1 billion in revenue in the first two quarters of 2012 compared to nearly $900 million in the first six months of 2011
  • Search revenues in the first half of the year totaled $8.1 billion, up 19 percent from nearly $6.8 billion during the same timeframe in 2011
  • Display-related advertising revenues in the first half of the year totaled almost $5.6 billion, accounting for 33 percent of 2012 half-year revenues, up 4 percent from $5.3 billion in the first half of 2011
  • Retail advertisers constitute the largest category of internet ad spending for the first half of this year, claiming 20 percent of the total revenues at $3.4 billion, while Automotive brought in $2.2 billion for first-half 2012, marking an uptick to 13 percent versus 11 percent of category spend reported for half-year 2011 at $1.7 billion.

    Annual Figures
    The following chart highlights half-year Internet ad revenue since the IAB began measurements in 1996; dollar figures are rounded.

    Year Revenue % Growth
    HY 2012 $17,028 14%
    HY 2011 $14,941 23%
    HY 2010 $12,127 11%
    HY 2009 $10,900 -5%
    HY 2008 $11,510 15%
    HY 2007 $9,993 26%
    HY 2006 $7,909 37%
    HY 2005 $5,787 26%
    HY 2004 $4,599 40%
    HY 2003 $3,292 11%
    HY 2002 $2,978 -20%
    HY 2001 $3,720 -7%
    HY 2000 $4,013 147%
    HY 1999 $1,627 110%
    HY 1998 $774 125%
    HY 1997 $344 320%
    HY 1996 $82  
     
     
    Total $111,624  

     

    Ad Category Breakouts (in millions)

      HY 2011* HY 2012
      % $ % $
    Search 46% $6,843 48% $8,128
    Display Related 36% $5,349 33% $5,586
      -Banner Ads 22% $3,266 21% $3,622
      -Digital Video Commercials 6% $891 6% $1,053
      -Rich Media 5% $727 3% $495
      -Sponsorship 3% $465 2% $416
    Mobile* 4% $636 7% $1,242
    Classifieds 8% $1,235 7% $1,160
    Referrals/Lead Generation 5% $800 5% $834
    E-mail 1% $79 0% $78

    *Revised from prior year to include mobile as a discreet category

     

    Revenue Pricing Models (in millions)

      HY 2011 HY 2012
      % $ % $
    Performance-Based 64% $9,588 67% $11,461
    Impression-Based 31% $4,668 31% $5,199
    Hybrid 5% $686 2% $368

     

    by Steve Hall    Oct-11-12   Click to Comment   
    Topic: Research   

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