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Internet Ad Revs Reach Record $20 Billion

16 Oct, 2013 By: Doug McPherson

WASHINGTON – Internet ad revenues hit a record $20.1 billion in the first half of 2013 according to the Interactive Advertising Bureau (IAB).

That’s an 18-percent increase over last year’s first-half ad revenues of $17 billion. And mobile ad revenues reached $3 billion in the first half of 2013, which represented 145-percent growth from $1.2 billion in the same period year-over-year.

Randall Rothenberg, president and CEO of the IAB, said in a prepared statement that mobile advertising’s growth proves marketers are recognizing “the tremendous power of smaller screens.”

Digital video took in $1.3 billion in revenue during the first six months of 2013, a 24-percent jump over the first half of 2012.

Overall, display-related ad revenues in the first half of 2013 totaled $6.1 billion, which accounted for 30 percent of revenues in the time period – up 9 percent from $5.6 billion in the first half of 2012. Search revenues in the first half of 2013 totaled $8.7 billion – up 7 percent from the first half of 2012.

The top three advertising verticals accounted for 46 percent of advertising revenue, including retail at 20 percent, financial services at 14 percent and automotive at 12 percent.

Sherrill Mane, senior vice president, research, analytics and measurement at the IAB, said, “Consumers are embracing new screens, new content and transforming how they shop, communicate and consume content at an accelerated clip. On response, marketers are turning to those same interactive arenas just as quickly.”

The IAB report includes data on online ad revenues from websites, commercial online services, free E-mail providers and all other companies selling online advertising.

In related news, AT&T says it’s shutting down its online and mobile ad network unit, which it launched to expand targeted ad business. The company was forced to scale back after failing to compete with entrenched players including Google and Facebook. Instead, the network will focus on advanced TV, mobile and online advertising within its owned and operated properties, including U-verse TV.

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