Internet ad revenues hit historic high

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IAB / Interactive Advertising BureauInternet ad revenues surged to a landmark $20.1 billion, according to a just-released IAB Internet Advertising Revenue Report prepared by the New Media Group of PwC US. This is an 18% increase over last year’s first-half ad revenues of $17 billion.


Maintaining the trend, second quarter 2013 internet ad revenues also saw an 18% YOY increase, reaching $10.3 billion, up from $8.7 billion in Q2 2012.

The survey includes data concerning online advertising revenues from web sites, 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.

Report highlights:

Mobile revenues soared to $3 billion in the first half of 2013, representing triple-digit growth at 145%, from $1.2 billion in the same period last year

Digital video, a component of display-related advertising, took in $1.3 billion in revenue during the first six months of 2013, an uptick of 24% over the first half of 2012 at $1.1 billion

Search revenues in the first half of 2013 totaled $8.7 billion, up 7% from $8.1 billion in the first half of 2012

Display-related advertising revenues in the first half of 2013 totaled $6.1 billion, accounting for 30% of revenues in the time period, up 9% from $5.6 billion in the first half of 2012

The top three advertising verticals accounted for 46% of advertising revenue, including Retail at 20%, Financial Services at 14% and Automotive at 12%

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

Year

Revenue

% Growth

HY 2013

$20,066

18%

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)

Half Year 2013

Half Year 2012

$

%

$

%

Search

8,728

43%

8,128

48%

Display Related

6,078

30%

5,586

33%

  Banner Ads

3,780

19%

3,622

21%

  Digital Video Commercials

1,307

7%

1,053

6%

  Rich Media

640

3%

495

3%

  Sponsorship

351

2%

416

2%

Mobile

3,038

15%

1,242

7%

Classifieds and Directories

1,291

6%

1,160

7%

Lead Generation

853

4%

834

5%

E-mail

78

0%

78

0%

 

Revenue Pricing Models (in millions)

Half Year 2013

Half Year 2012

$

%

$

%

Performance-Based

13,110

65%

11,461

67%

Impression-Based

6,581

33%

5,199

31%

Hybrid

375

2%

368

2%