Online Advertising Now Surpasses Newspaper Advertising

The IAB Internet Advertising Revenue Report for the full year 2010 and Q4 2010 both showed record results in the United States. Released today by the Interactive Advertising Bureau (IAB) and prepared by PwC US, the latest report puts all 2010 Internet advertising revenues at a record $26 billion, up 15% from 2009. Fourth quarter revenue also hit new highs at $7.45 billion, up 19% from Q4 2009 and 15% from Q3 2010.

Highlights of the report include:

* There were record numbers for the yearly advertising revenue as well as record quarterly highs in the Q4 2010.
* The most popular ad format in 2010 was search which represented 46% of revenue and saw 12% growth from last year.
* Sponsorships saw the most growth with an 88% increase over last year and 142% increase in the fourth quarter alone.
* Display-related advertising – which includes Digital Video Commercials, Ad banners/display ads, sponsorships and rich media – continued to grow this year, totaling nearly $10 billion with an increase of 24% over 2009.
* The results exhibit revenue growth for the past five consecutive quarters.
* The Annual Report marks the debut of estimated US mobile ad revenue for 2010: between $550 and $650 million.

“As the latest IAB Internet Advertising Revenue Report amply demonstrates, brand advertisers and marketers have adopted the power of digital media as a central element of their campaigns,” said Randall Rothenberg, President and CEO, IAB. “Consumers have shifted more of their time to digital media – watching television shows and movies online – and advertisers now accept this multifaceted medium as a key component for reaching their targets.”

“With a strong rebound from 2009, the $26 billion spent on Internet advertising points to a continued focus on digital media ad spend, with dollars catching up to the eyeballs. More time spent online, especially with increases in digital video and social media, has certainly helped to fuel the continued growth,” said David Silverman, PwC Assurance partner.

“We now have had five consecutive quarters of growth since the great recession impacted interactive advertising in 2009,” said Sherrill Mane, Senior Vice President, Industry Services, IAB. “The record-breaking revenue in Q4 2010 and the total year indicate that interactive advertising has weathered the storm and then some.”