Internet Ad Revenues Rise To $17 Billion In First Half 2012

14% Growth

In the first half of 2012, internet advertising revenues climbed to an all-time high of $17 billion, representing a 14% increase year-over-year, according to IAB INTERNET ADVERTISING's Revenue Report released by the INTERACTIVE ADVERTISING BUREAU (IAB) and prepared by PwC US. This performance is compared to the landmark $14.9 billion reported for the first six months of 2011.

Also marking a 14% year-over-year increase, second quarter internet ad revenues for this year hit $8.7 billion, up from $7.7 billion during the same time period in 2011.

Highlights of the report include:

* Mobile generated significant growth -- almost doubling year-over-year -- up 95% to $1.2 billion in half-year 2012 from $636 million in the comparable 2011 period

* Digital video, a component of display-related advertising, saw an increase of 18% year-over-year, bringing in a little over $1 billion in revenue in the first two quarters of 2012 compared to nearly $900 million in the first six months of 2011

* Search revenues in the first half of the year totaled $8.1 billion, up 19% from nearly $6.8 billion during the same timeframe in 2011

* Display-related advertising revenues in the first half of the year totaled almost $5.6 billion, accounting for 33% of 2012 half-year revenues, up 4% from $5.3 billion in the first half of 2011

* Retail advertisers constitute the largest category of internet ad spending for the first half of this year, claiming 20% of the total revenues at $3.4 billion, while Automotive brought in $2.2 billion for first-half 2012, marking an uptick to 13% versus 11% of category spend reported for half-year 2011 at $1.7 billion

"This report establishes that marketers increasingly embrace mobile and digital video, as well as the entire panoply of interactive platforms, to reach consumers in innovative and creative ways," said IAB Pres./CEO RANDALL ROTHENBERG. "These half-year figures come on the heels of a study from HARVARD BUSINESS SCHOOL researchers that points to the ad-supported internet ecosystem as a critical driver of the U.S. economy. Clearly, the digital marketing industry is on a positive trajectory that will propel the entire American business landscape forward."

"The tremendous growth of mobile advertising revenue over the past year is an indication of the importance of location to advertisers and mobility to consumers," said PwC US Partner DAVID SILVERMAN. "Bringing the power of the internet to mobile devices has opened up a world of possibilities to both consumers and marketers."

"Solid double-digit growth in a stagnating economy is a significant accomplishment," said IAB SVP/Research, Analytics and Measurement SHERRILL MANE. "There is evidence that CPMs are maintaining, and even increasing, further substantiating the vitality of the internet ad market."

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