Online Ad Revenue Continues to Rise

Internet advertising revenue continues to rise, according to a report released Wednesday by the Interactive Advertising Bureau and PricewaterhouseCoopers.

Advertising revenue for the full year reached a record high of $26 billion, a 15 percent increase over 2009. Revenue for the fourth quarter increased 16 percent to $7.45 billion from the same period last year and was the fifth consecutive quarter exhibiting growth.

“We are probably out of the woods when it comes to the impact of the great recession,” said Sherrill Mane, the senior vice president of industry services at the IAB.

Despite a slight decrease in overall revenue share, search advertising was still the most popular ad format with $12 billion ad dollars spent in 2010, representing nearly half of the overall ad revenue.

For the first time, the report estimated the revenue for mobile advertising — including search and display ads delivered through tablets and smart phones — at between $550 million and $650 million.

Display advertising showed the fastest growth, with advertisers spending $10 billion dollars on video, banners, sponsorships and rich media ads. The category grew 24 percent compared to 2009. Classified advertising remained consistent at around 10 percent of total revenue and lead generation decreased to about 5 percent of total revenue for the year.

Industries showing increases in their digital advertising spend included retail, packaged goods, health and pharmaceutical and travel and leisure. The telecommunications and technology industries showed decreases in ad spending.