Despite Macroeconomic Slowdown, IAB Report Shows Continued Growth in Internet Advertising
Internet advertising revenues in the United States rose 26% to $21.2 billion in 2007, compared with $16.9 in 2006, according to the recently-released 2007 Internet Advertising Revenue Report. The report, conducted by PriceWaterhouseCoopers and sponsored by the Interactive Advertising Bureau, marks the fifth consecutive year of explosive growth.
2007 was the first year in which Internet advertising revenue surpassed radio advertising ($19.8 billion) and cable television advertising ($20.9 billion) to become the third-highest grossing segment, after television distribution ($31.2 billion) and newspaper advertising ($48.6 billion).
Though industry revenue concentration remains high, the share of advertising revenue held by “long-tail” sites (those sites other than the top 50 portals) increased by 43%, from a share of 7.7% in 2006 to a share of 11.0% in 2007.