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Internet advertising shooting higher
You no doubt know already that Internet advertising was hot in 2006. Your own station's website ad sales likely grew double digits and your spot sales probably felt some new competition from various online enterprises. The Interactive Advertising Bureau (IAB) is out with its official tally by Pricewaterhouse Coopers, finding that US Internet advertising revenues increased by 35% last year to a record 16.9 billion. Q4 revenues were also up 35% to 4.8 billion. "We have every confidence that this growth trend will continue as marketers allocate more of their total marketing dollars to interactive and the industry delivers effective and innovative platforms for connecting with consumers," said Randall Rothenberg, President and CEO of the IAB.
2006 Internet Advertising Revenue Report
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ADVERTISING FORMATS
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2006 (Ttl =$16,879)
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2005 (Ttl = $12,542M)
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Type of Advertising
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$
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% share of market
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$
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% share of market
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Display Advertising
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3,685
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22%
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2,508
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20%
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Sponsorship
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496
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3%
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627
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5%
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Slotting Fees
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0
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0%
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125
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1%
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Rich Media (including Broadband Video)
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1,192
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7%
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1,004
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8%
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All Display
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5,373
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32%
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4,264
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34%
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Keyword Search
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6,799
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40%
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5,142
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41%
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Classifieds
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3,059
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18%
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2,132
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17%
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E-mail
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338
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2%
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251
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2%
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Lead Generation
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1,310
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8%
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753
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6%
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TOTALS:
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16,879
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100%
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12,542
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100%
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INDUSTRY CONCENTRATION
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FY 2006
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FY 2005
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Top 10
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69% ($11,647)
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72% ($9,030)
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Top 25
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82% ($13,841)
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86% ($10,786)
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Top 50
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92% ($15,529)
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95% ($11,915)
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PRICING MODELS
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FY 2006
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FY 2005
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CPM or Impression
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48% ($8,102)
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46% ($5,769)
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Performance Deals
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47% ($7,933)
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41% ($5,142)
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Hybrid
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5% ($844)
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13% ($1,630)
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Source: Interactive Advertising Bureau
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©2007 Radio Business Report, Inc. All rights reserved.
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