IAB reports slow quarterly growth in online ad revenue

Despite the economic downturn, online advertising revenues continue to grow, according to a recent report from the Interactive Advertising Bureau and PricewaterhouseCooper.

by Helen Leggatt

Online advertising revenue totaled $5.9 billion in the third quarter, up 11% from the same period last year, found the report. However, growth in ad revenue remained flat quarter-to-quarter, rising just 2% from Q2.

Some are reporting the IAB's report as showing online ad revenue growth 'grinding to a halt'. Others believe the continued growth despite the current economic downturn, while slower, only serves to illustrate the strength of interactive advertising.

"A weakening economy will continue to be a challenge to all forms of advertising-supported media," said David Silverman, a partner at PricewaterhouseCoopers. "However, the Internet should be better poised to withstand the storm given its ability to combine performance-based advertising along with broad-based branding."

Those channels that are most effectively measured in terms of ROI, in particular online channels, will continue to be those that attract the largest chunks of budget as marketers seek better accountability and transparency on results.