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 Chicago 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, Sept 5 to take advantage of Super Saver Rates!


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.



Featured White Papers

IBM: Social Analytics - The Science Behind Social Media Marketing

IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

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.



    • Digital Marketing Analyst
      Digital Marketing Analyst (GovLoop) - Washington D.C.Are you passionate about audience acquisition? Love effective copy and amazingly effective...
    • Product Specialist
      Product Specialist (Agora Inc. ) - BaltimoreDescription: The Product Specialist is hyper-focused on the customer experience and ensures that our...
    • Partnerships Senior Coordinator
      Partnerships Senior Coordinator (Zappos.com, Inc.) - Las VegasZappos IP, Inc. is looking for a Partnerships Senior Coordinator! Why join us? Our...