Internet ad revenues rise $17 billion in first half

In the first half of 2012, internet advertising revenues climbed to an all-time high of $17 billion, a 14%  increase YOY, according to the IAB Internet Advertising Revenue Report released by the Interactive Advertising Bureau and prepared by PWC. This performance is compared to the landmark $14.9 billion reported for the first six months of 2011.

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 – up 95 percent to $1.2 billion in half-year 2012 from $636 million in the comparable 2011 period
• 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

“This report establishes that marketers increasingly embrace mobile and digital video, as well as the entire panoply of interactive platforms, to reach consumers in innovative and creative ways,” said Randall Rothenberg, President and CEO, IAB. “These half-year figures come on the heels of a study from Harvard Business School researchers that points to the ad-supported internet ecosystem as a critical driver of the U.S. economy. Clearly, the digital marketing industry is on a positive trajectory that will propel the entire American business landscape forward.”

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

Ad Category Breakouts (in millions)

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

Revenue Pricing Models (in millions)