IAB: PPC And Search Gain In Q4, FY08 Online Ad Revs At $23B


According to data released yesterday by the IAB/PwC on Q4 and full year 2008 online advertising revenues, performance-based advertising and search gained while other segments declined slightly or were flat. Overall, online advertising grew 10.6% in 2008 to reach $23.4 billion. US online ad revenue in Q4 was $6.1 billion, up from $5.8 billion in the third quarter of last year. Especially noteworthy for the readers of this blog, search ad revenues comprised 46 percent of Q4 online ad revenues, up from 42 percent a year ago.

Here are a selection of charts from the report:

For all the talk of the collapse of display, usage remained constant in 2008 vs. 2007. By contrast, rich media and video lost share and so did classifieds, which has continued to lose share over the past four years. Also worthy of note is the big jump in performance based ads vs. CPM pricing. What that means is that more marketers were buying display advertising on a PPC basis. It also reflects the strength of search marketing at a time of economic uncertainty.

On a related note, eMarketer publishes some of SEMPO’s numbers regarding the breakdown of spending in the search market in 2008:

SEMPO’s survey data and projections indicate that $13.5 billion was spent on SEM last year. This is a broader category than the IAB’s search category; it includes technology and SEO-related spending. It also includes fees and costs not reflected in direct ad spending. The IAB and SEMPO numbers don’t line up but the different definitions of the market could help account for the relatively sizable discrepancy between the IAB 2008 search revenue number ($10.5 billion) and SEMPO’s SEM spending figure ($13.5 billion).



Greg Sterling is a Contributing Editor at Search Engine Land, and writes a personal blog Screenwerk, examining the broader world of media and advertising. He also posts at a Local Mobile Search, which is focused on the mobile Internet.

See more articles by Greg Sterling >


Share, Bookmark & Discuss This Article
More:


Keep Updated: News Via Email | News Via RSS Feed | News Via Twitter


See more stories like this in the Members Library! Check out the SEM Industry: General, SEM Industry: Stats, Search Ads: General, Search Marketing: General, Stats: Size, Stats: Spend Projections sections of the Members Library where this story is filed. Members also get access to exclusive video content, a members-only weekly & monthly newsletter, plus more. Check out all the benefits!

Comments are closed.


RECENT COMMENTS

  • mazter said " Matt, thanks for the article. I do not know if you have used Google's real estate listing but as far"
  • annew said " Amazing Danny, thanks so much for the walk down memory lane. Conjures up the original match.com wher"
  • Jill Whalen said " Great trip down memory lane, Danny! I wasn't at the first couple of conferences, but started my spea"

See All »


FREE DAILY SEARCH NEWS RECAP!

Stay on top of all the search news with our daily summary, the SearchCap newsletter. View a sample ›

STAY CURRENT THROUGHOUT THE DAY

RSS Feeds

The Search Engine Land feed keeps you informed as news happens. SEE ALL FEEDS »

Upcoming Search Engine Land Conferences

Advertise With Us »

Search Engine Land produces SMX, the Search Marketing Expo conference series. SMX events deliver the most comprehensive educational and networking experiences - whether you're just starting in search marketing or you're a seasoned expert.


SMX Web Site » | SMX Difference » | SMX News »


Join us at an upcoming SMX event:

Search Marketing Now Learn more about search marketing with our free online webcasts and webinars from our sister site, Search Marketing Now. Upcoming online events include:


See more webcast topics »

TRACK US SOCIALLY
Upcoming Search Engine Land Conferences

Get Your Search Engine Land
Premium Membership!

Become a premium member today and receive:

  • Express commenting privileges & photo.
  • Exclusive videos & newsletters.
  • Discounts to our SMX conferences.
  • Access to "How To" & Other Archives.

Learn More

Upcoming Search Engine Land Conferences
Add to GoogleAdd to My Yahoo!Add to BloglinesAdd to NetvibesAdd to Windows Live