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Internet Ad Revenues Hit Historic High in 2011, IAB Reports

25 Apr, 2012 By: Jackie Jones

NEW YORK – Internet advertising revenues hit a historic high of $31 billion for the full year of 2011, according to the latest data from the Internet Advertising Bureau (IAB) Revenue Report.

The landmark number represents a 22-percent increase when compared to 2010’s full-year results, which also broke records at the time, the IAB said.

“This historic moment, with an especially impressive achievement in mobile, is indicative of an increased awareness from advertisers that they need to reach consumers where they are spending their time – in digital media,” said Randall Rothenberg, president and CEO of IAB. “Pushing past the $30 billion barrier, the interactive advertising industry confirms its central place in media. Across search, display and digital video, digital provides a wealth of opportunity for brands and consumers. With the proliferation of smartphones and tablets, it is likely that the tremendous growth in mobile will continue as these screens become even more crucial to the marketing mix.”

The report, prepared by PricewaterhouseCoopers (PwC), also showed that fourth-quarter 2011 revenues achieved its own high, reaching $9 billion, a 15-percent increase over 3Q 2011’s results of $7.8 billion, and a 20-percent increase year-over-year when compared to 4Q 2010’s $7.4 billion.

Other findings include:
• Mobile grew 149 percent to $1.6 billion in 2011 from $0.6 billion in 2010, the fastest growth of all categories.
• Digital video increased 29 percent year-over-year, bringing in $1.8 billion in revenue in 2011, compared to $1.4 billion in 2010.
• Search revenues in 2011 totaled $14.8 billion, up nearly 27 percent from $11.7 billion in 2010.
• Display-related advertising revenues in 2011 were $11.1 billion (35 percent of total yearly revenues in 2011), an increase of 15 percent from 2010.
• Retail advertisers continue to represent the largest category of Internet advertising spend, accounting for 22 percent ($7.1 billion) in 2011, up from 21 percent ($5.5 billion) in 2010.

“The year 2011 saw mobile advertising become a meaningful category,” said David Silverman, partner at PwC U.S. “By combining some of the best features of the Internet, along with portability and location-based technology, mobile advertising is enabling marketers to deliver timely, targeted, relevant and local advertisements in a manner that was not previously possible. It is for these reasons that we expect strong growth to continue with mobile advertising.”

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