Report: Internet Ad Revenues Top $1 Billion in '98

  |  February 10, 1999   |  Comments

For the first time, Internet advertising revenue has exceeded $1 billionwithin the same calendar year, totaling $1.3 billion through the nine monthsended September 1998, according to a report from the Internet Ad Bureau.

For the first time, Internet advertising revenue has exceeded $1 billion within the same calendar year, totaling $1.3 billion through the nine months ended September 1998, according to a report from the Internet Ad Bureau.

Third quarter 1998 Internet advertising revenues climbed to $491 million, an increase of 116 percent over the same quarter for 1997, the 10th consecutive record- setting quarter for the industry, the report said.

The IAB Ad Revenue Report compiles data reported directly from publishers. Based on the first three quarters total of $1.3 billion reported for 1998, coupled with historical seasonal revenue patterns, 1998 is approaching a $2 billion run-rate.

According to the report, which is conducted by the New Media Group of PricewaterhouseCoopers for the IAB, the categories which led online spending during the third quarter were consumer-related (27%), computing (24%), financial services (16%), telecom (11%) and new media (7%).

Banner advertisements continue to be reported as the predominant type of advertising, accounting for 53 percent, with sponsorships (30%), interstitials (6%) and other (11%) rounding out the category. Reflecting the growth of e- commerce, hybrid deals accounted for 52% of revenue transactions. with CPMs or impression-based deals at 43% and performance-based deals at 5% of revenues.

"This report is the biggest endorsement yet from the marketing and advertising communities that online advertising is here to stay as an integral component of their marketing and branding plans," said IAB Chairman Rich LeFurgy. ". . .Even in a traditionally weak third quarter, we have seen a significant bounce in revenue growth. Larger percentage increases on larger numbers attest to the robustness of our medium. The industry continues to break records, quarter after quarter indicating that more and more traditional advertisers are experiencing the effectiveness of online advertising. . .in a word, it works."

The report represents data from more than 200 companies representing over 1,200 Web sites.

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

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 9 Strategies to Engage Your Consumers White Paper

9 Strategies to Engage Your Consumers
Online marketing apps are highly engaging - taking visitors on short, but effective, conversion-focused journeys. This white paper illustrates 9 strategies to engaging consumers through app-like experiences.

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?

Resources

Jobs

    • Sr. Paid Search Manager
      Sr. Paid Search Manager (Bisk Education) - TampaCurrently seeking a Sr. Paid Search Manager in Tampa, FL for Bisk Education! Bisk Education is a...
    • 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...