Online Ad Industry Rebounded in 2010
In 2010, online ad revenues hit their highest level, reaching $26 billion, after faltering in 2009.
In 2010, online ad revenues hit their highest level, reaching $26 billion, after faltering in 2009.
The online ad industry has rebounded. In 2010, online ad revenues hit their highest level, reaching $26 billion, after faltering in 2009. Performance-based spending on search advertising and display formats led the way, as did ad buys from retail and telecom brands.
According to the Interactive Advertising Bureau’s “Internet Advertising Revenue Report,” conducted by PricewaterhouseCoopers, online ad revenues rose around 15 percent to $26 billion, up from $22.6 billion in 2009. That year represented a dip in online ad spending, from the previous high of $23.5 billion in 2008.
The IAB and PWC also reported 2010 fourth quarter online ad spending rose 19 percent over Q4 ’09 to $7.5 billion.
“We have now had five consecutive quarters of year-on-year growth,” said Sherrill Mane, SVP industry services at IAB. “At least for the Internet advertising economy, the recession appears to be behind us.”
Though search advertising continues to dominate as the format of choice, search ad revenues were a slightly smaller chunk of the total ad spending pie – 46 percent compared to 47 percent in 2009. Still, search ad revenues increased 12 percent over ’09, reaching $12 billion last year.
Display spending – a bucket including banners, rich media, video ads, and sponsorship units – accounted for 38 percent of online ad revenues in 2010, hitting $9.9 billion. Banners attracted the bulk of that spending at $6.2 billion.
Meanwhile, classified ad spending rose 15 percent in 2010 over 2009, totaling $2.6 billion, as lead generation revenues dropped around 8 percent to $1.3 billion. Spending on ads and links in emails represented a sliver of overall revenues at $195 million, falling 33 percent compared to 2009.
The organizations also reported online ad spending by retail firms accounted for 21 percent of online ad revenues, reaching $5.5 billion in 2010. Telecom, financial services, and auto verticals followed at 16 percent, 12 percent and 11 percent, respectively.
The report showed performance-based pricing models were most popular with advertisers in 2010, attracting 62 percent of online ad dollars. CPM buys fell from a 37 percent share in 2009 to a 33 percent share last year.
Images provided by IAB.
More about:
Lucy helps organizations leverage knowledge for in... View Tech Talk
TVSquared is the global leader in cross-platform T... View Tech Talk
Grata is a B2B search engine for discovering small... View Tech Talk
Streaming has become a staple of US media-viewing ... Download Now
Data is the lifeblood of so many companies today. ... Download Now
This report documents the findings of a Fireside c... Download Now
Customers decide fast, influenced by only 2.5 touc... Download Now
Streaming has become a staple of US media-viewing habits. Streaming video, however, still comes with a variety of pesky frustrations that viewers are ...
View resourceData is the lifeblood of so many companies today. You need more of it, all of which at higher quality, and all the meanwhile being compliant with data...
View resourceThis report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...
View resourceCustomers decide fast, influenced by only 2.5 touchpoints – globally! Make sure your brand shines in those critical moments. Read More...
View resourceFive major advertising trade bodies are asking California’s attorney general to delay enforcement of CCPA by six months so companies have more time to...
View articleMarketers are increasingly prioritizing digital, which is expected to account for one-third of 2017's ad spend. However, there are serious issues with...
View articlePublishers dealing with the growing use of ad blockers haven’t had much to smile about lately, but according to research conducted by C3Res...
View articleLove them or loathe them, ad blockers aren’t going anywhere soon, forcing publishers to sit down and have a serious rethink about their marketing stra...
View articlePerfect viewability should be your goal, right? Not necessarily, according to new research that highlights the fact that viewability isn't quite that ...
View articleBad ads aren’t only fraudulent. Last year, Google disabled 780 million ads for infractions such as promoting counterfeit products and being...
View articleNew research shows that ad fraud is just as costly as it was last year, though the issue is most prevalent in certain areas, such as programmatic and ...
View articleDespite some negative reports in the past year, there are some bright spots on the horizon for display advertisers, including increased viewability ra...
View article