After a significant decrease during the recession in 2008 and 2009, internet advertising revenues saw a dramatic comeback this year; this according to statistics released by the Internet Advertising Bureau (IAB), an organization representing hundreds of media outlets and online advertising companies.
Industry analysts and experts who expressed optimism during the past 2 years seem to have been right. The first half of 2010 showed an increase in online ad revenue of 11.3% over last year, equivalent to $12.1 billion. The IAB was quick to point out that the jump is a new half-year record, as well as an all time record high for the second-quarter—both testaments to how surprising the turnaround has been.
The display advertising sector showed strong growth this year, with banners, animations and videos netting in revenue up by 16% or $4.4 billion over the same period last year. According to Randall Rothenberg, IAB Chief Executive, the results are a clear indication of the growing number of consumers who want immersive online entertainment and information. In turn, this has spurned online marketers to adopt new interactive media strategies to promote brands on the internet, a trend “that’s only going to continue,” he added.
These figures only affirm the ongoing shift from offline, to online. In comparison, the newspaper industry has suffered a steady drop in revenue since 2000. Statistics from the Newspaper Assn. of America indicate that in 2009, newspapers made only $24 billion in print advertising, a drop of close to 30% from 2008. It’s a worrying trend, considering that in 2000 to 2002, the newspaper industry drew in roughly $48 billion in advertising revenue.
Enform foresees more advertising companies developing their own interactive online strategies, it seems that it’s inevitable for internet advertising to continue to grow. A coordinated approach becomes more important.