Onlline Ad Revenues Accelerate at 37%; 1H 2006 Revenues Hit $7.9B
Internet
advertising revenues (U.S.) for the first six months of 2006 were
approximately $7.9 billion, a new record and a 37%
increase over the first half of 2005, according to Interactive
Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC). Internet
advertising revenue totaled nearly $4.1billion for
the second quarter of 2006, exceeding the $4 billion mark,
representing a 36% increase over same period 2005. Q2 2006 revenues
represent a 5.5% increase over Q1 2006.
Search, broadband, lead generation,
behavioral targeting, consumer generated content and new emerging
platforms like mobile and iPTV are powering this growth.
The following highlights key revenue data breakouts; dollar figures are rounded ($ millions):
Ad Formats – Internet ad revenues broken down by ad formats are ($ millions):
| FH 2006 | FH 2005 | |
| Search | 40% ($3,164) | 40% ($2,315) |
| Classifieds | 20% ($1,582) | 18% ($1,042) |
| Referrals/Lead Generation | 8% ($633) | 6% ($347) |
| 2% ($158) | 2% ($116) | |
| Display Related | 31% ($2,531) | 34% ($1.968) |
| Rich Media | 7% ($554) |
8% ($463) |
| Ad Banners / Display Ads | 21% ($1,661) |
20% ($1,157) |
| Sponsorships | 4% ($316) | 5% ($289) |
| Slotting Fees | <1% (<1$) | 1% ($58) |
Industry Concentration – Concentration of revenues by the top 10, top 25 and top 50 has remained consistent.
| FH 2006 | FH 2005 | |
| Top 10 | 71% | 72% |
| Top 25 | 84% | 87% |
| Top 50 | 94% | 96% |
Pricing Models – CPM pricing continues to be the predominant choice for buyers and sellers, at a slight cost to Performance Deals and Hybrid.
| FH 2006 | FH 2005 | |
| CPM or Impression | 48% ($3,796) | 48% ($2,778) |
| Performance Deals | 47% ($3,717) | 40% ($2,315) |
| Hybrid | 5% ($395) | 12% ($694) |
