Online Advertising Grows 10% in 2008: IAB
Though its growth has slowed, the death of online advertising has apparently been greatly exaggerated.
U.S. online ad revenue in 2008 grew 10.6% in 2008 to $23.4 billion, the Interactive Advertising Bureau reported Monday.
However, though 2008 was a record year, the growth of online advertising is apparently slowing.
U.S. online ad revenue for the fourth quarter of 2008 was $6.1 billion, an increase of 4.5% from the third quarter total of $5.8 billion and a 2.6% increase from the fourth-quarter 2007 total of $5.9 billion.
In terms of format, search led the way, accounting for 46% of fourth-quarter revenue, up from 42% in 2007, the IAB reported.
Search has been the leading online ad format since 2004, according to the IAB.
Display banner advertising was the second most popular online ad format, accounting for 21%, while classified ads came in third, accounting for 13%, according to the IAB.
Lead generation and rich media each accounted for 7% of online ad spending in 2008, according to the IAB.
Also according to the IAB, 10 ad-sales firms accounted for 72% of online revenue in the fourth quarter of 2008 while companies ranked 11 through 25 accounted for 11%.
Retailers are the largest category of ad spenders, accounting for 22% of online ad revenue in 2008, or $5 billion, the IAB reported.
Financial-services firms came in second in 2008, accounting for13% or $3 billion, according to the IAB.
Automotive advertisers came in third, accounting for 12%, or $2.8 billion, the IAB reported.
Also according to the IAB, approximately 57% of online ad revenue was made in pay-for-performance deals, while 39% was made on a cost-per-impression basis, according to the IAB.
Hybrid deals accounted for 4%, the IAB reported.
