Internet Advertising Revenues hit record high

Advertising revenues in Q3 ’07 surpass $5.2 billion setting a new high with expected advertising totals to hit an all time high of $20 billion a year

The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC) announced that Internet advertising revenues exceeded $5.2 billion for the third quarter of 2007, representing yet another historic high for a quarter and a $1.1 billion increase, or 25.3 percent, over Q3 2006.

The results, published in the IAB Internet Advertising Revenue Report, are nearly 3 percent higher than Q2 2007, itself the last record-setting quarter. All three quarters in 2007 have set new highs Q1 at $4.9 billion, Q2 at $5.1 billion, and now Q3 at $5.2 billon. Revenues for the first nine months of 2007 totalled $15.2 billion, up nearly 26 percent over the $12.1 billion recorded during the first nine months of 2006. With a total for 2007 expected to exceed $20 billion against last year’s total of $16.88 billion.

"The continued robust growth of the industry indicates that marketers increasingly understand and appreciate the benefits of interactive advertising," said Randall Rothenberg, President and CEO of the IAB. "Marketers large and small have come to accept digital media as the fulcrum of any marketing strategy."

"Internet advertising revenues are on an annual run-rate exceeding $20 billion, further demonstrating the industry has truly come into its own," said Peter Petrusky, director, Entertainment, Media & Communications Practice, PricewaterhouseCoopers. "The emergence of new platforms, including broadband video, rich Internet applications, mobile, and social media promise to deliver new benefits for consumers, and create exciting new venues for marketers to realize value in digital media."

A copy of the full half-year report is available at www.iab.net/pwc_half_year_2007