Online ad revenues hit record high

A report finds that online ad revenue for Q3 2010 is up 17% from last year

In the last couple of weeks, reports have shown that the economy has grown by 2% this year and consumer spending is up by 2.6%.  ComScore announced last week that the online display market saw a 22% increase in ad impressions in Q3 2010, compared to the same time last year.  And the good news keeps getting better (knock on wood): IAB (Interactive Advertising Bureau) and PwC US announced Wednesday that Internet advertising revenues hit $6.4 billion in Q3 2010, representing the highest quarterly result ever for the online advertising industry.

The record represents a 17% increase since Q3 2009, when Internet ad revenues that had been steadily rising since 2002 suddenly bottomed out due to the economic recession. 

“Advertisers are shifting more of their brand messaging online, accounting for this welcome surge in a difficult economy,” said David Silverman, a partner at PwC, in a prepared statement. “This trend reflects the accelerating shift in consumer behavior towards the internet and away from traditional media.”

While the announcement comes as a big leap from 2009, it falls in with a steady upward trajectory for the whole of 2010.  Last month, IAB and PcW released a report showing that Internet ad revenues for the first half of 2010 had reached $12.1 billion, setting a record high for half-year revenues and representing an 11.3% increase since the first half of 2009.  While the 2010 half-year revenues were 11.3% higher than 2009, Q2 2010, specifically, saw a 13.9% increase from Q2 2009.

Display ads raked in $4.4 billion in the first half of 2010, representing a 16% increase from the first half of 2009.  Digital video leapt 31% from 2009 to 2010, and search advertising took in $5.7 billion in the first half of 2010, representing an 11.6% increase from the same time period in 2009.

“The Internet has transformed consumers’ lives and how they experience entertainment, information and brands,” said Randall Rothenberg, President and CEO of IAB, in the company’s most recent announcement. “Marketers have embraced digital media because that’s where they can engage with their consumers. This vibrant, innovative industry is creating jobs and contributing to the growth of the U.S. economy.”  

The announcement comes on the heels of comScore’s recent announcement that display ad impressions for Q3 2010 were up 22%.  Facebook led publishers with 23.1% of the market, followed by Yahoo, which took 11% of the market.

Founded in 1996, IAB consists of over 460 media and technology who, together, sell 86% of all online advertising in the United States.  PcW provides tax and advisory services.

Image source: iab.net