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Despite the current economic crisis, the U.S. Internet advertising industry is not experiencing a pull-back in spending. Rather, online advertising continues a fast, if somewhat muted, growth during 2008, as the current situation accelerates the shift of advertising budgets from traditional into new media.
Internet Advertising Revenues Top $21 Billion in ’07, Reaching Record High
Q4 ‘07 Revenues Total $5.9 Billion; Unabated Growth Defies Other Economic Trends
Following reports from IDC, the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) said that Internet advertising revenues for 2007 are estimated to grow to $21.1 billion, a 25 percent increase over $16.9 billion for 2006.
Online advertising generated close to $1.4 billion last year, equating to just over 10% of the estimated $12 billion generated by the advertising industry as a whole. General internet ad growth slowed to 21 per cent last year from 56 per cent the previous year. Total internet ad spending rose 34 per cent last year.
According to Forrester pan-European online advertising is set to reach 16bn euros (£10.8bn; $22bn) by 2012.
According to IDC, U.S. Internet Advertising grew by 27% to $25.5 Billion in 2007.
IDC research also found that Google’s U.S. market share had declined for the first time in two years, but that does not mean that the growth is not there. Internet ad spend in Q4 of 2007 was up 28% over the same [...]