Internet Advertising Revenues – Soaring High!

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If you thought global ad revenues at the end of 2011 being $31 Bn was something that was jaw dropping, then the next set of figures might just blow you out! As per the IAB Internet Advertising Revenue Report, Q1 figures of 2012 for advertising revenue stands at about $8.4 Bn dollars which is 15% up compared to Q1 2011 figures! We just wonder what this year’s final figures would be.

Even though this year has started off great, last years numbers were not bad at all. In fact, in 2011, internet ads in the mobile category recorded the fastest growth with revenues increasing by about 150% amounting to about $1.6 Bn. Even internet search revenues posted a strong growth of about $ 14.8 Bn in 2011- this was up 27% from 2010 figures. Next display –related ad revenues grew 35% in 2011 an amounted to about $11 Bn. Of all the spenders, the retail advertisers had a lions share in the ad spends in 2011 amounting to $7.1 Bn.

About 65% of the ad spends were performance based ads while about 31% of the ad spends were impression based. The rest belonged to the hybrid category.

Coming back to this year, the industry has recorded a significant growth from about $1.5 Bn dollars to where it is now! Marketers are aware that online consumers are connected digitally more now with the advent of social media and look forward to capitalizing on this opportunity. The ad revenues from the digital channel will only go up – there’s no doubt in that! At the same time, we reckon that impression based ad spends will decline and more performance based ad spends will go up as marketers look forward to the ROI!

 

Check out the Press release for 2011 figures and 2012 Q1.

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