Total online revenues jumped roughly 40 percent for both the second quarter of 2004 and the first half of the year.
The online advertising picture continues to brighten, with search as the dominant force. The Internet Advertising Report, covering Q2 and the first half of 2004 from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC), found overall revenue spikes, plus increases across a number of ad formats and industry categories.
The second quarter of 2004 rang up roughly $2.37 billion in Internet advertising revenue, representing a 42.7 percent increase over Q2 2003. Additionally, the first half of 2004 found online ad revenue up a staggering 39.7 percent over the same period last year, to $4.6 billion.
Search accounted for 40 percent of the Q2 figures, coming in at $947 million. That's considerably less than the $481 million the format earned during the same period in 2003.
Display ads, classifieds, sponsorships, and rich media also performed admirably, capturing higher revenues in Q2 2004 than in 2003, but slightly less of the total revenue landscape.
Display ads accounted for 20 percent of total revenues in Q2 2004, compared to 23 percent in 2003; classifieds' percentage of total quarterly revenue stayed flat at 17 percent; sponsorships declined from 12 percent in Q2 2003 to 9 percent in 2004; and rich media dropped one percentage point to 8 percent.
E-mail advertising was a disappointment, generating $47 million in revenue in the second quarter of 2004, compared to $66 million the year prior. E-mail's contribution to total online advertising revenue was halved to 2 percent.
Advertising in the consumer sector exhibited quarterly growth, representing 49 percent of total spend versus 35 percent in 2003. Financial services also exhibited a gain, swelling from 13 percent of total spending in 2003 to 17 percent in the second quarter of 2004. The computing and media sectors each dropped 2 percentage points, while pharmaceuticals and healthcare flattened.
The final portion of the IAB/PwC report revealed that CPM and impression pricing represented 44 percent of the Q2 '04 advertising mix, down from 45 percent the year prior. Performance deals increased 4 points to 39 percent, while hybrid deals dropped 3 points to 17 percent.
Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, August 29 to take advantage of Super Saver Rates!
The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.
The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.
September 23, 2014