Internet Ad Revenue Totals $31B in 2011, Up 22%

It’s official: 2011 was the year of mobile – and search and display advertising.

The Interactive Advertising Bureau’s Internet Advertising Report, prepared by PwC U.S., reveals that digital advertising revenue totaled $31 billion in 2011. That represents an increase of 22 percent over 2010.

Mobile advertising was the fastest growing segment, hitting $1.6 billion in 2011, more than twice the amount spent in the prior year.

Search advertising accounted for the largest category at $14.8 billion; that represents 46.5 cents for every dollar spent on digital advertising in 2011.

And display advertising totaled $11 billion in 2011, a 15 percent increase compared to 2010. However, it accounted for a slightly smaller portion of all Internet ad spending: 34.8 cents for every dollar spent in digital advertising in 2011 compared to 37 cents in 2010.

“Pushing past the $30 billion barrier, the interactive advertising industry confirms its central place in media,” IAB CEO Randall Rothenberg said in a prepared statement.

The report, prepared by PwC U.S., also shows that fourth quarter revenue for 2011 totaled $9 billion, a 20 percent year-over-year increase compared to $7.4 billion in 2010.

Here is the breakdown for 2011:

 

2010
In billions

2011
In billions

Year-over-
year change*
Search $11.7 $14.8 26.6%
Classifieds, directories $2.6 $2.6 -0.7%
Lead generation $1.3 $1.5 15.0%
Email $0.2 $0.2 9.2%
Mobile* $0.6 $1.6 149.0%
Display      
  Digital video $1.4 $1.8 28.8%
  Ad banners $6.0 $6.8 14.2%
  Sponsorships $0.7 $1.1 56.1%
  Rich media $1.6 $1,3 -14.6%
  Display, total $9.6 $11.1 14.9%
Total, Internet ad spending $26.0 $31.7 21.9%

*Dollar amounts rounded to the nearest billion; percentage changes are calculated based on numbers rounded to the nearest thousands (000).

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