Internet Ad Revenue Hits $17 Billion in First Half 2012, Up 14 Percent
In the first half of 2012, internet advertising revenues climbed to an all-time high of $17 billion, representing a 14 percent increase year-over-year, according to IAB Internet Advertising Revenue Report released today by the Interactive Advertising Bureau and prepared by PwC US. In the first half of 2011, internet revenue was $14.9 billion.
Also marking a 14 percent year-over-year increase, second quarter internet ad revenues for this year hit $8.7 billion, up from $7.7 billion during the same time period in 2011.
Highlights of the report include:
- Mobile generated significant growth - almost doubling year-over-year figures - up 95 percent to $1.2 billion in half-year 2012 from $636 million the comparable period in 2011
- Digital video, a component of display-related advertising, saw an increase of 18 percent year-over-year, bringing in a little over $1 billion in revenue in the first two quarters of 2012 compared to nearly $900 million in the first six months of 2011
- Search revenues in the first half of the year totaled $8.1 billion, up 19 percent from nearly $6.8 billion during the same timeframe in 2011
- Display-related advertising revenues in the first half of the year totaled almost $5.6 billion, accounting for 33 percent of 2012 half-year revenues, up 4 percent from $5.3 billion in the first half of 2011
- Retail advertisers constitute the largest category of internet ad spending for the first half of this year, claiming 20 percent of the total revenues at $3.4 billion, while Automotive brought in $2.2 billion for first-half 2012, marking an uptick to 13 percent versus 11 percent of category spend reported for half-year 2011 at $1.7 billion.
Annual Figures
The following chart highlights half-year Internet ad revenue since the IAB began measurements in 1996; dollar figures are rounded.Year Revenue % Growth HY 2012 $17,028 14% HY 2011 $14,941 23% HY 2010 $12,127 11% HY 2009 $10,900 -5% HY 2008 $11,510 15% HY 2007 $9,993 26% HY 2006 $7,909 37% HY 2005 $5,787 26% HY 2004 $4,599 40% HY 2003 $3,292 11% HY 2002 $2,978 -20% HY 2001 $3,720 -7% HY 2000 $4,013 147% HY 1999 $1,627 110% HY 1998 $774 125% HY 1997 $344 320% HY 1996 $82
Total $111,624 Ad Category Breakouts (in millions)
HY 2011* HY 2012 % $ % $ Search 46% $6,843 48% $8,128 Display Related 36% $5,349 33% $5,586 -Banner Ads 22% $3,266 21% $3,622 -Digital Video Commercials 6% $891 6% $1,053 -Rich Media 5% $727 3% $495 -Sponsorship 3% $465 2% $416 Mobile* 4% $636 7% $1,242 Classifieds 8% $1,235 7% $1,160 Referrals/Lead Generation 5% $800 5% $834 E-mail 1% $79 0% $78 *Revised from prior year to include mobile as a discreet category
Revenue Pricing Models (in millions)
HY 2011 HY 2012 % $ % $ Performance-Based 64% $9,588 67% $11,461 Impression-Based 31% $4,668 31% $5,199 Hybrid 5% $686 2% $368
