2010 Internet Ad Revenues Rebound To Record High

Online Advertising Back On Track

US Internet ad revenues reached an all-time high of $26.0 billion in 2010, up 14.9% from $22.7 billion in 2009, fuelled by growth in display-related formats, according to the Interactive Advertising Bureau (IAB).

• Interactive revenues for the second half of 2010 reached a record $13.9 billion, up 18.3% from $11.8 billion in 2H09.

Below, other findings issued by the IAB and prepared by PwC US:

• Search was the most popular ad format in 2010, accounting for 46% of total revenues, down 1 percentage point (PP) from 46% in 2009. Search revenues totalled $12.0 billion, up 12.2% from $10.7 billion in 2009.
• Display-related formats – digital video commercials, ad banners and display ads, sponsorships, and rich media – accounted for 38% of the total ad market in 2010, up from 35% in 2009. The category grew 24% year over year (YOY) in 2010, reaching $9.82 billion in annual revenues.

A number of key formats drove display-related ad revenue growth in 2010, including the following:

• Sponsorships spending totalled $0.72 billion in 2010 (3% of 2010 revenues), up 87.6% YOY, and up 142% in 4Q10 over 4Q09 levels.
• Display banners ads reached $6.2 billion (24% of revenues), up 23.1% YOY.
• Digital video commercials totalled $1.4 billion (5% of revenues), up 39.6% YOY.

Among other Internet-ad related findings:

• Classified advertising accounted for 10% of revenues in 2010 ($2.6 billion), up 15% from $2.3 billion in 2009.
• Lead-generation revenues fell 8%, to $1.3 billion.
• Email marketing revenues fell 33%, to $195 million (some 1% of the total ad market).

The IAB also published estimates of US mobile ad revenue*, estimated between $550 and $650 million in 2010.