Online Ad Spending Reaches $4.2B in Q3

  |  November 14, 2006   |  Comments

The latest Internet Ad Revenue Report from the IAB and PwC shows 30 percent growth over the same period last year.

Internet ad spending grew by more than 30 percent year-to-year to reach $4.2 billion in the third quarter, according to the latest Internet Advertising Revenue Report from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).

The quarter sets a new record, topping the $4.1 billion reported for the second quarter of this year, which brought interactive ad spending to $7.9 billion in the first half of 2006. Revenues in the third quarter of 2005 reached $3.1 billion, and revenues for all of 2005 topped out at $12.5 billion.

"We're close to surpassing the full year revenues from 2005 in the first three quarters of this year, which is very exciting," Sheryl Draizen, SVP and general manager of the IAB, told ClickZ. "Marketers are becoming more confident in the medium. They're spending more, seeing better results, and then returning to spend even more."

The report does not break out spending categories in the first or third quarters of a year, but in its mid-year report there was continued acceleration of growth in search, classifieds and display advertising. In the first half, search took in 40 percent of online revenues, display held 31 percent, and classifieds had 20 percent. Referrals and lead generation comprised 7 percent of the total, and e-mail held 2 percent in the first half.

Breakouts for the third quarter are not expected to be drastically different from those in the first half, Draizen said, but the details will not be known until the full-year report is compiled in early 2007. One trend in the first half that is likely continuing is marketers' use of multi-channel approaches, both across media and within interactive itself, she said.

For example, an increasing number of marketers are spending more on both search and display ads, creating a synergy that exceeds the results of either medium alone, she said.

"Marketers are seeing the power of search and display together. The impact of the combination is greater than both of them by themselves," she said.

The IAB and PwC have been conducting the report together since 1996. It is compiled by PwC's New Media Group from data shared by all companies that report meaningful online advertising revenues, including Web sites, ad networks and ad-supported e-mail providers.

ClickZ Live San Francisco Revolutionize your digital marketing campaigns at ClickZ Live San Francisco (August 10-12)!
Educating marketers for over 15 years, our action-packed, educationally-focused agenda offers 9 tracks to cover every aspect of digital marketing. Join over 500 digital marketers and expert speakers from leading brands. Register today!

ABOUT THE AUTHOR

Kevin Newcomb

Kevin Newcomb joined ClickZ in August 2004, covering search marketing and other online marketing topics. He has been reporting on web-based businesses since 2000.

Before the bubble burst, Kevin was a marketing manager for an online computer reseller, handling copywriting, e-mail marketing, search marketing and running the affiliate program.

With a combination of real-world marketing experience and years of business journalism, Kevin brings to ClickZ a unique ability to deliver news and training materials that help online marketers do their jobs better.

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

US Consumer Device Preference Report

US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.

E-Commerce Customer Lifecycle

E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.

WEBINARS

Jobs

  • Sr. Marketing Specialist, PPC
    Sr. Marketing Specialist, PPC (Charter Communications) - StamfordSr. Marketing Specialist, PPC– Digital Marketing Charter Communications...