IAB Ad Revenue Report Shows Mixed Trends

  |  June 18, 2008   |  Comments

Report shows a slight dip in revenue from preceding three months and a year-over-year increase. Could the economic slowdown be taking its toll?

It's official: Spending on Internet advertising continues to climb -- year over year -- reaching $5.8 billion for the three-month period ended March 31, 2008, according to a report released Tuesday by the Interactive Advertising Bureau.

That represents an 18.2 percent increase over the same period in 2007, when digital advertising revenue totaled $4.9 billion.

Compare the data another way, though, and there's a sign of slippage.

Internet ad revenue dropped 1.7 percent compared to the record breaking $5.9 billion tally for the last three months of 2007.

The decline was expected, said David Silverman, partner, Assurance, PricewaterhouseCoopers, which conducts the study on behalf of the IAB.

"The cyclical fourth quarter to first quarter drop in traditional media advertising spend, combined with an overall economic slowdown, resulted in a not so unexpected first quarter slowdown in the growth of online advertising," Silverman said in a prepared statement.

That wasn't the case, however, last year when Internet ad revenue totaled $4.9 billion for the first three months of 2007, an increase of 2 percent compared to the last three months of 2006. Ditto for the year before that: Internet ad revenue reached $3.9 billion for the first three months of 2006, an increase of 6 percent compared to the prior three months.

Industry pundits point out that ad spending typically peaks during the fourth quarter of the year during the Christmas holiday season.

Executives from IAB and Pricewaterhouse Coopers remain optimistic about Internet advertising's future. "The fundamentals of interactive advertising spend continues to be positive and I would expect to see continued growth in the future," Silverman said.

IAB CEO Randall Rothenberg weighed in: "We expect growth to continue, as consumers spend more and more time online, and marketers find more -- and more innovative -- ways to reach them through digital media."

This particular report doesn't break out Internet ad revenue by category, such as search or display advertising. Stay tuned for that information three or so months from now when the IAB releases its mid-year report.

The IAB's revenue tally for the first three months is in line with impression growth estimates released earlier this week by Nielsen Monitor-Plus. Also, TNS Media Intelligence last week reported that spending on display advertising grew only by 8 percent for the first three months of 2008 compared to 15.9 percent a year ago.

ClickZ Live Toronto Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!

ABOUT THE AUTHOR

Anna Maria Virzi

Anna Maria Virzi, ClickZ's executive editor from 2007 until 2012, covered Internet business and technology since 1996. She was on the launch team for Ziff Davis Media's Baseline and also worked at Forbes.com, Web Week, Internet World, and the Connecticut Post.

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

ion Interactive Marketing Apps for Landing Pages White Paper

Marketing Apps for Landing Pages White Paper
Marketing apps can elevate a formulaic landing page into a highly interactive user experience. Learn how to turn your static content into exciting marketing apps.

eMarketer: Redefining Mobile-Only Users: Millions Selectively Avoid the Desktop

Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?

Jobs

    • Contact Center Professional
      Contact Center Professional (TCC: The Contact Center) - Hunt ValleyLooking to join a workforce that prides themselves on being routine and keeping...
    • Recruitment and Team Building Ambassador
      Recruitment and Team Building Ambassador (Agora Inc.) - BaltimoreAgora, www.agora-inc.com, continues to expand! In order to meet the needs of our...
    • Design and Publishing Specialist
      Design and Publishing Specialist (Bonner and Partners) - BaltimoreIf you’re a hungry self-starter, creative, organized and have an extreme...