Industry Maintains Record-breaking Trend; 2007 Q3 Revenues Up Over 25% from 2006 Q3
NEW YORK, November 12, 2007 The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC) today announced that Internet advertising revenues exceeded $5.2 billion for the third quarter of 2007, representing yet another historic high for a quarter and a $1.1 billion increase, or 25.3 percent, over Q3 2006. The results, published in the IAB Internet Advertising Revenue Report, are nearly 3 percent higher than Q2 2007, itself the last record-setting quarter. All three quarters in 2007 have set new highsQ1 at $4.9 billion, Q2 at $5.1 billion, and now Q3 at $5.2 billon. Revenues for the first nine months of 2007 totaled $15.2 billion, up nearly 26 percent over the $12.1 billion recorded during the first nine months of 2006.
“The continued robust growth of the industry indicates that marketers increasingly understand and appreciate the benefits of interactive advertising,” said Randall Rothenberg, President and CEO of the IAB. “Marketers large and small have come to accept digital media as the fulcrum of any marketing strategy.”
“Internet advertising revenues are on an annual run-rate exceeding $20 billion, further demonstrating the industry has truly come into its own,” said Peter Petrusky, director, Entertainment, Media & Communications Practice, PricewaterhouseCoopers. “The emergence of new platforms, including broadband video, rich Internet applications, mobile, and social media promise to deliver new benefits for consumers, and create exciting new venues for marketers to realize value in digital media.”
“The results of the survey continue to underscore the value that interactive advertising brings to the marketplace, as marketers and agencies build on established guidelines and best practices to control costs and maximize returns from their growing interactive budgets,” added David Silverman, partner, Assurance, PricewaterhouseCoopers.
Conducted by PricewaterhouseCoopers, the “IAB Internet Advertising Revenue Report” was started by the IAB in 1996, and represents data from all companies that report meaningful online advertising revenues. The results are considered the most accurate measurement of interactive advertising revenues because the data is 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, 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.
The IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by PricewaterhouseCoopers. The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first and third quarters.
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 140,000 people in 149 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice. “PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
About the IAB:
Founded in 1996, the Interactive Advertising Bureau (iab.com) represents over 300 leading interactive companies that actively engage in and support the sale of interactive advertising. IAB members are responsible for selling over 86% of online advertising in the United States. On behalf of its members, the IAB is dedicated to the continuing 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 evaluates and recommends standards and practices, fields interactive effectiveness research, and educates the advertising industry about interactive advertising.