In their regular analysis of revenues generated by the online advertising industry, the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers say search unsurprisingly accounted for the most spending of any category (49%) in the first half of the year. Display was next with 37 percent of interactive spend in 1H 2011. Total spending on Search came in a $7.3 billion during the period.
“Strong online advertising growth has continued into the first half of 2011,” said David Silverman, a partner at PricewaterhouseCoopers, in a statement. “Fueling this growth is the ability of advertisers to correlate performance and results with the dollars they are investing.”
Search and Display each grew about 27 percent year-over-year, meaning Search doubled its growth rate from the first half of 2010, when it only grew 11.6 percent. The sector as a whole grew 23 percent to $14.9 billion dollars. Search also increased its share of spending, growing from 47% in the 2010 period to 49% this year.
Pricing has continued shifting to performance-based models, as 64% of spending in the first half of the year was performance-based, as compared to 61% in the same period of 2010. Impression-based spending went down to 31%, from 35% in the same year-ago period. Hybrid models accounted for 5% of spending in 1H11, as compared to 4% in the first half of 2010.