Internet ad revenues hit $31bn in 2011

The IAB Internet Advertising Revenue Report for the full-year 2011 reveals that revenues soared to a landmark high of $31 billion. That milestone represents a 22 per cent increase over 2010’s full-year number, which itself had been a record-breaker at $26 billion. The report by the Interactive Advertising Bureau (IAB) and prepared by PwC U.S., also unveils that fourth quarter revenues for 2011 hit a best-ever at $9 billion, marking a 15 per cent increase over the third quarter 2011, which came in at $7.8 billion, and a 20 per cent growth year-over-year in comparison to 2010’s $7.4 billion.

Other highlights of the report include:
– Mobile experienced the fastest growth of all categories – triple-digit growth year-over-year – up 149 per cent to $1.6 billion in full-year 2011 from $0.6 billion in 2010.
– Digital video, a component of display-related advertising, saw a significant uptick of 29 per cent 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 almost 27 per cent from $11.7 billion in 2010.
– Display-related advertising revenues in 2011 totaled $11.1 billion or 35 per cent of 2011 revenues, up 15 per cent from $9.6 billion in 2010.
– Retail advertisers continue to represent the largest category of internet ad spending, accounting for 22 per cent in 2011, or $7.1 billion, up from 21 per cent ($5.5 billion) reported in 2010.

“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, IAB. “Pushing past the $30 billion barrier, the interactive advertising industry confirms its central place in media. Across search, display, 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 year 2011 saw mobile advertising become a meaningful category,” said David Silverman, Partner, 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.”

“Digital advertising’s stellar performance in 2011 attests to the high value marketers put on the medium,” said Sherrill Mane, Senior Vice President, Research, Analytics, and Measurement, IAB. “In addition, with advancement in areas like mobile and digital video, it appears that there will be robust avenues for interactive’s growth in the future.”

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