ONLINE ADS FOR FIRST SIX MONTHS OF 2012 REACH ALL-TIME HIGH OF $17 BILLION, UP BY 14%, SEARCH AND RETAIL LEAD

Online Advertising Ecosystem (Click Image To Enlarge)

While some Web publishers have been squeezed by tighter ad budgets and a slow economy, new figures show the online ad market is healthier than ever.   

Revenues increase 14% in HY 2012 — Internet advertising revenues in the United States totaled $8.7 billion in the second-quarter of 2012, an increase of 5% from the 2012 first-quarter total of $8.3 billion and an increase of 14% from the 2011 second-quarter total of $7.7 billion. Year-to-date revenues through June 2012 totaled $17.0 billion, up 14% from the $14.9 billion reported 2011.

Sherrill Mane, SVP of Research, Analytics and Measurement at the IAB, said Thursday.

“Solid double-digit growth in a stagnating economy is a significant accomplishment.” 

Mane added.

“There is evidence that CPMs are maintaining, and even increasing, further substantiating the vitality of the Internet ad market.”

Online Ad Revenues By Format

• Search revenues accounted for 48% of HY 2012 revenues, up from 46% in HY 2011. Search revenues totaled $8.1 billion in HY 2012, up 19% from HY 2011, when Search totaled $6.8 billion.
• Display-related advertising accounted for $5.6 billion or 33% of total revenues during HY 2012, up 4% from the $5.3 billion (36% of total) reported in HY 2011. HY 2012 Display-related advertising includes Display/Banner Ads (21% of HY 2012 revenues, or $3.6 billion), Rich Media (3% or $495 million), Digital Video (6% or $1 billion), and Sponsorship (2% or $416 million). 
• Classifieds revenues totaled $1.2 billion or 7% of HY 2012 revenues, on par with the $1.2 billion (8% of total) reported in HY 2011.  
• Lead Generation revenues accounted for 5% of HY 2012 revenues, or $834 million, up 4% from the $800 million (5% of total) reported in HY 2011.  
• Mobile revenues totaled 7% of HY 2012 revenues, or $1.2 billion, up 95% from the $636 million (4% of total) reported in HY 2011.  
• Email revenues accounted for 0.5% of HY 2012 revenues or $78 million, down 1% from the $79 million (0.5% of total) reported for HY 2011. 

Online Ad Revenues By Category

• Retail advertisers, despite an overall decline, continue to represent the largest category of Internet ad spending, accounting for 20% in the first-half of 2012, or $3.4 billion, down from 4% ($3.5 billion) reported in HY 2011.  
• Telecom companies accounted for 12% of 2012 first six months' revenues or $2.1 billion, consistent with revenues reported in 2011, which represented 14% of HY 2011 revenues.  
• Financial Services advertisers accounted for 13% in 2012 ($2.2 billion), up from the $1.9 billion (13% of total) reported in HY 2011. 
• Automotive advertisers accounted for 13% of revenues in the first-half of 2012, or $2.2 billion, up from the $1.7 billion (11% of total) reported in HY 2011. 
• Computing products advertisers represented 8% of revenues in the first six months of 2012, or $1.3 billion, down from the $1.5 billion (10% of total) reported in HY 2011. 
• Leisure Travel (airfare, hotels, and resorts) accounted for 8% of revenues in the first six months of 2012 ($1.3 billion), up from the $1.2 billion (8% of total) reported in HY 2011. 
• Consumer Packaged Goods represented 5% in 2012, or $898 million, up from $866 million (6%) reported in HY 2011. 
• Entertainment accounted for 4% of 2012 revenues, or $729 million, up from the $556 million (4% of total) reported in HY 2011. 
• Media accounted for 4% in 2012, or $719 million, up from the $660 million (4% of total) reported in 2011.  
• Pharma/Healthcare accounted for 6% in 2012, or $1.1 billion, up from the $608 million (4% of total) reported in HY 2011. 

IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PwC.

Courtesy of an article dated October 11, 2012 appearing in MediaPost Publications Online Media Daily