IAB: Second Quarter Ad Spending Up 20 Percent

The Internet Advertising Bureau said
second quarter spending on Internet ads rose 20 percent to $423 million
compared to the same period a year ago.

Figures from the IAB’s “Advertising Revenue Reporting Program” showed
Internet ad spending rose for the ninth consecutive quarter.

According to the report, which was presented by PricewaterhouseCoopers at the
IAB’s annual Fall East Coast meeting in New York this week,
Internet advertising continues its billion dollar run-rate for the third
consecutive quarter.

“The continuing growth of online advertising revenue only reaffirms the
vitality of the medium as an increasingly important component for
advertisers’ campaigns,” said IAB Chairman Rich LeFurgy in a statement.

“We are seeing increasing numbers of large advertisers integrate online
spending into their overall media plans. Additionally, the industry is
experiencing a surge of interest from all quarters — agencies,
advertisers, publishers, technology enablers and research companies.”

Leading online spending categories were computing, 26 percent; consumer
goods, 24 percent; financial services, 13 percent; new media, 13 percent;
and telecommunications, 9 percent.

The survey also found that 95 percent of ad deals remain cash-based, with
barter deals accounting for the remainder.

Banner advertisements continue to dominate spending with a 58 percent
share. Other leading expenditures are sponsorships, 37 percent and
interstitials 3 percent.

Conducted by the New Media Group of PricewaterhouseCoopers, the
“Advertising Revenue Report” was started by the IAB in 1996 and represents
data from more than 200 companies representing more than 1,200 Web sites.
Results are released quarterly.