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Online Ad Revenues Jump 23 Percent

Posted on 5.25.2011

Online advertising revenues in the U.S. hit $7.3 billion for the first quarter of 2011, representing a 23-percent increase over the same period in 2010, according to figures released by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers.

This marks the highest first-quarter revenue level ever for the industry and a significant increase over last year’s first-quarter revenue level, which had been the highest on record to date.

“The consistent and considerable year-over-year growth we’re seeing demonstrates that digital media is an increasingly popular destination for ad dollars, and for good reason,” said Randall Rothenberg, President and CEO of the IAB. “As Americans spend more time online for information and entertainment purposes, digital advertising and marketing has emerged as one of the most effective tools businesses have to attract and retain customers.”

Search made up for 46 percent of the ad revenues, followed by display advertising with 24 percent. Sponshorships (3 percent of the share) have grown 88 percent since 2009, and classifieds (10 percent) are up 15 percent.

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