IAB: Online ad revenue poised to rebound after 3.4% drop in 2009

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Although online advertising revenues in the US dipped last year to $22.7 billion, a 3.4% decline from 2008, signs of recovery were evident late in the year, according to the Interactive Advertising Bureau.

The IAB's “Internet Advertising Revenue Report” for 2009, released April 7 with PricewaterhouseCoopers, found that the fourth quarter of 2009 showed signs of Web-based ad spending recovery. The period saw a record quarterly high for ad revenue of $6.3 billion, a 2.6% increase year-over-year and a 14% increase over last year's third quarter, according to the report.

“Digital media is now a core component of successful advertising and marketing campaigns,” said Randall Rothenberg, president and CEO of the IAB, during a conference call. “As consumers spend more of their time immersed in digital media, marketers are increasingly reaching them there, building brands online and making digital the central force in their cross-media strategies.”

Search- and display-related advertising continue to hold the largest percentages of interactive advertising spending. Search revenues accounted for 47% of total ad spending, reaching $10.7 billion in 2009, a slight increase from the prior year. Display-related advertising, which includes display ads, rich media, digital video and sponsorships, totaled nearly $8 billion in 2009, an increase of 4% from 2008.

Digital video, meanwhile, saw significant growth last year, with an increase of almost 39% from 2008 to 2009.

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