StatsAd Industry MetricsOnline Ad Revenues Hit $4.6 Billion in 1999

Online Ad Revenues Hit $4.6 Billion in 1999

In perhaps its first year as a true medium of the masses, Internetadvertising expenditures climbed to $4.62 billion, growing 141 percent overthe $1.92 billion reported for 1998, according to the IAB.

In perhaps its first year as a true medium of the masses, Internet advertising expenditures climbed to $4.62 billion, growing 141 percent over the $1.92 billion reported for 1998, according to the Internet Advertising Bureau‘s (IAB) Internet Ad Revenue Report.

The report, conducted by PricewaterhouseCoopers, is compiled from data supplied by companies selling advertising on the Internet. Skeptics believe surveys like this may return skewed results, since the companies selling advertising have an interest in the perception of growth in the industry.

The report showed that fourth quarter advertising revenue grew to $1.7 billion, a 161 percent increase over the same quarter in 1998.

“Growth measured in billions of dollars is certainly terrific news for the Internet economy,” said Rich LeFurgy, chairman of the Internet Advertising Bureau.

“No longer are advertisers and marketers asking why they should advertise online, they are now asking how big a part of their budgets they should devote to online exposure.”

Categories leading online spending during the fourth quarter were consumer-related (31 percent), financial services (17 percent), computing (16 percent), new media (12 percent) and business services (7 percent).

Most of the transactions — 94 percent, in fact — were conducted on a cash basis in the fourth quarter. Barter, trade, and packaged deals accounted for five percent.

The study also found that banner ads dominated, accounting for 53 percent of ads sold in Q4. Sponsorships were next, at 25 percent, followed by interstitials at four percent, email at three percent.

Hybrid deals accounted for 52 percent of revenue transactions for Q4. CPM deals made up 40 percent of deals, and performance-based deals were 8 percent of revenues for the fourth quarter.

Reprinted from internet.com’s AdResource.com

Related Articles

The evolution of display: How is advertisers' use of display advertising changing?

Ad Industry Metrics The evolution of display: How is advertisers' use of display advertising changing?

8m Rebecca Sentance
What can advertising spend tell us about the future of social networks?

Ad Industry Metrics What can advertising spend tell us about the future of social networks?

8m Rebecca Sentance
Breaking down the Facebook auction: How to manage rising CPMs and deliver sales

Actionable Analysis Breaking down the Facebook auction: How to manage rising CPMs and deliver sales

8m Clark Boyd
The Year Ahead: Top Resolutions for Digital Advertisers

Ad Industry Metrics The Year Ahead: Top Resolutions for Digital Advertisers

11m Chad Bronstein
Do ad blockers hold the clue to the future of advertising?

Ad Industry Metrics Do ad blockers hold the clue to the future of advertising?

1y Tim Flagg
Our four favourite findings from the ClickZ Digital Advertising Breakfast

Actionable Analysis Our four favourite findings from the ClickZ Digital Advertising Breakfast

9m Leonie Mercedes
YouTube is getting rid of 30-second unskippable pre-roll ads

Ad Industry Metrics YouTube is getting rid of 30-second unskippable pre-roll ads

9m Al Roberts
Ad blocker use continues to grow rapidly

Ad Industry Metrics Ad blocker use continues to grow rapidly

9m Al Roberts