IAB/PwC: Web Ad Spend Grew 37 Percent in First Half ‘06
IAB/PwC: Web Ad Spend Grew 37 Percent in First Half ‘06
Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) released Internet Advertising Revenues during MIXX Conference and Expo
Marketers spent $7.9 billion on interactive advertising during the first half of 2006, a 37 percent increase over the year ago period, according to the latest report from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC). Spending during the second quarter was $4.1 billion, marking a 5.5 percent increase over Q1.
Ad spending during the first six months of the year increased across all interactive channels, including search, classifieds, e-mail and display advertising; and growth in each category was roughly in line with the year-ago period. Spending on search was $3.2 billion, or 40 percent of the pie, whereas display ad formats drew expenditures of $2.5 billion (31 percent) and classifieds brought down $1.6 billion (20 percent). The remaining nine percent went to e-mail and referrals/lead generation, which the IAB and PwC began measuring last year.
The following highlights key revenue data breakouts; dollar figures are rounded ($ millions):
Ad Formats – Internet ad revenues broken down by ad formats are ($ millions):
| FH 2006 | FH 2005 | |
| Search | 40% ($3,164) | 40% ($2,315) |
| Classifieds | 20% ($1,582) | 18% ($1,042) |
| Referrals/Lead Generation | 8% ($633) | 6% ($347) |
| 2% ($158) | 2% ($116) | |
| Display Related | 31% ($2,531) | 34% ($1.968) |
| Rich Media | 7% ($554) | 8% ($463) |
| Ad Banners / Display Ads | 21% ($1,661) | 20% ($1,157) |
| Sponsorships | 4% ($316) | 5% ($289) |
| Slotting Fees | <1% (<1$) | 1% ($58) |
Update on India online advertising by Rajiv: According to a FICCI-PricewaterhouseCoopers (PwC) study on the Indian media and entertainment industry, internet advertising in India will grow at a robust CAGR of 50% (which is a higher growth rate than both television and print and also more than the international figures), from Rs 100 crore to Rs 750 crore by 2010.
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How does this translate to the Indian market? How is web ad spend trending in India?
hey deap nice question.. no figures on the Indian Online Industry for the first half of 2006 but here is something which should give you a broader picture.
According to a FICCI-PricewaterhouseCoopers (PwC) study on the Indian media and entertainment industry, internet advertising in India will grow at a robust CAGR of 50%, from Rs 100 crore to Rs 750 crore by 2010. :))
Media agency ZenithOptimedia expects Internet ad spend in India to more than double in 2007 and to be 10 times its current size in 2009 (via agencyfaqs). Ad spends on the Internet could jump to Rs. 450 crore this year from Rs. 210 crore in 2006 and could skyrocket to Rs 2,250 crore mark by 2009, the study said.