Internet ad revenue jumps 7.5% in Q1: IAB

Share this article:

US Internet advertising revenues hit $5.9 billion in the first quarter of 2010, a 7.5% year-over-year increase and an all-time high for the period, according to a report by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).

Randall Rothenberg, president and CEO of the IAB, attributed this growth to marketer confidence in interactive channels.

For full-year 2009, online advertising revenues dipped 3.4% from the prior year to $22.7 billion.

In response to the IAB's report, digital intelligence firm eMarketer revised its US online advertising spending estimate for 2010. EMarketer previously predicted that online advertising spending in the US would reach $23.6 billion, an increase of 5.5% from last year. The firm now forecasts online ad spending for 2010 will hit $25.1 billion, a 10.8% growth rate from 2009.

David Hallerman, senior analyst at eMarketer, said continuing economic instability is driving money online because of its measurability and its low cost.  

Banner ad spending and search marketing both fared better than eMarketer previously predicted. In Q1, Google's net US ad revenues improved by 21%. EMarketer predicts that Google will account for 38.5% of all US online ad revenue this year.

Microsoft's net US online advertising revenues went up 15.6% in Q1. EMarketer predicts that Microsoft will account for 4.9% of all US online ad spending.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

IAB Tech Lab to Set Global Digital Marketing Standards

IAB Tech Lab to Set Global Digital Marketing ...

In looking to solve complex tech issues, the association opens up full membership to agencies and solutions providers.

Integration Meets Innovation in Planters' Digital Campaign

Integration Meets Innovation in Planters' Digital Campaign

The snacks brand found a healthy way to navigate today's world of digital marketing saturation.

USA Today Decides to Play Games for Real

USA Today Decides to Play Games for Real

It partners with game-maker Arkadium to add 60 new digital games to its site, offering advertisers more segmented breakdowns of players.