Online Ad Revenues Reach $10 Billion In First Half Of 2007, Search Remains Largest Single Category

The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) released online advertising figures for the second quarter and the first six months of 2007. For the first time, revenues exceeded $5 billion in a single quarter and first half revenues reached $10 billion, compared with $7.9 the previous year. Year-over-year growth was about 26 percent.

Search, the largest single category of online ad revenue, grew a modest point to 41 percent of all online revenues in FH 2007, compared with 40 percent during the same period in FH 2006. But the actual dollars were larger, at $4,097 for FH 2007, compared with $3,164 a year ago.

The rest of online advertising maintained basically the same distribution across ad categories. According to the IAB/PwC:

ScreenHunter_755.jpg

Chart source: IAB/PwC

Ad revenues remained “concentrated with the ten leading ad-selling companies, which accounted for 70 percent of total revenues in the second quarter of 2007, down slightly from 71 percent reported for the second quarter of 2006,” according to the IAB report. In one slight shift, performance-based advertising traded places with CPM advertising as the leading pricing model.

Full year online ad spending for 2006 was $16.9 billion; 2007 is on track to break $20 billion. Assuming that happens, it would bring US paid search advertising in at roughly $8.2 billion for the year, compared with $6.8 billion for 2006.

Related Topics: SEM Industry: General | Stats: General


About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.


SMX - Search Marketing Expo

SearchCap: Get all the top search stories emailed each day!

Name: Company: Email:

Like This Story? Please Share!

Other ways to share:

Like Our Site? Follow Us!

Search Engine Land on Google+

LinkedIn over 34,000 members
Subscribe to Our Feed! 80,565 subscribers take our RSS feed
 

Comments are closed.

Get Our News, Everywhere!

 
  • Advertise With Us
 

Click to watch SMX conference video

Join us at an upcoming SMX event:

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 Site » | SMX Difference » | SMX News »


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


 

Search Engine Land Periodic Table of SEO Ranking Factors

Get Your Copy
Read The Full SEO Guide