IAB Reveals Record Figures in Internet Advertising Revenue Report for 2011


ADOTAS – The Interactive Advertising Bureau (IAB) released its Internet Advertising Revenue Report for 2011 today, the keynote figure of which was a record $31 billion in total — a 22 percent increase from 2010’s then-record-high $26 billion. The fourth quarter of 2011 saw revenues of $9 billion, itself a “best quarter ever” landmark and — notable because the fourth quarter is that all-important “holiday shopping” quarter — 20 percent higher than Q4 2010’s $7.4 billion.

Perhaps not surprisingly, given the public’s rampaging adoption of mobile devices and the rapid technological advancement in mobile advertising, mobile was the fastest-growing digital advertising category of 2011. Mobile hit $1.6 billion over the course of the year, a 149 percent increase from 2010’s $0.6 billion. Video grew rapidly as well, to $1.8 billion in 2011 from $1.4 billion in 2010, a 29 percent increase.

Search still represents the biggest piece of the pie among categories of online/mobile advertising, accounting for 46.5 percent of ad revenues — that comes to $14.8 billion, up nearly 27 percent from 2010’s $11.7 billion. Display in general retains the number two spot in market share, accounting for nearly 25 percent of total revenue, spread out among banners and other display ads, video, rich media and sponsorships. Total display revenues hit $11.1 billion in 2011, a 35 percent increase from 2010’s $9.6 billion.

In a release issued by the IAB, David Silverman, partner with PwC (PricewaterhouseCoopers), said 2011 “saw mobile advertising become a meaningful category,” and the huge increase mobile saw in market share indeed shows the category came into bloom last year. “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,” Silverman explained. In the same release, IAB president and CEO Randall Rothenberg predicted that “the tremendous growth in mobile will continue as these screens become even more crucial to the marketing mix.”

The full report is available for download on the IAB’s website.


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