Slight Year on Year Decline in Toughest Advertising Marketplace in Decades
NEW YORK, NY (June, 5 2009) – In a recessionary environment that has hit other media sectors with greater force, Internet advertising revenues in the U.S. were at $5.5 billion for the first quarter of 2009, according to the numbers released today by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC). The figure represents a 5% decline over the same period in 2008.
“Interactive advertising has taken its rightful place as a fixture on marketing plans across sectors, which means we aren’t immune to broader economic trends,” said Randall Rothenberg, President and CEO of the IAB. “Nevertheless, consumers are spending more and more time with interactive media. For this, and other reasons, interactive media continues to gain share of marketing spend. We’re confident that growth will resume as the U.S. economic climate improves. Interactive advertising is the most accountable way to reach consumers—and in this economy, digital media will be a core component of any successful marketing campaign.”
David Silverman, PwC Assurance partner, echoed the observation that interactive advertising has been less affected by economic conditions than other media. “Current economic conditions are clearly challenging,” Silverman said. “Nonetheless, interactive media continues to consume a larger piece of the overall advertising pie.”
The following chart highlights quarterly ad revenue since 2001; dollar figures are rounded.
Conducted by the New Media Group of PricewaterhouseCoopers LLP, the Internet Advertising Revenue Report was launched in 1996 by the IAB, and aggregates data from all companies that report meaningful online advertising revenues. The results are considered the most accurate measurement of interactive advertising revenues with the data compiled directly from information supplied by companies selling advertising on the Internet. The survey includes data concerning online advertising revenues from Web sites, commercial online services, ad networks, free e-mail providers, and all other companies selling online advertising. First and third quarter revenue reports are estimates, with the actual figures being released along with second and fourth quarter data respectively. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information.
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About the IAB:
The Interactive Advertising Bureau (IAB) is comprised of more than 375 leading media and technology companies who are responsible for selling 86% of online advertising in the United States. On behalf of its members, the IAB is dedicated to the growth of the interactive advertising marketplace, of interactive’s share of total marketing spend, and of its members’ share of total marketing spend. The IAB educates marketers, agencies, media companies and the wider business community about the value of interactive advertising. Working with its member companies, the IAB evaluates and recommends standards and practices and fields critical research on interactive advertising. Founded in 1996, the IAB is headquartered in New York City with a Public Policy office in Washington, D.C. For more information, please visit iab.com.