Report: Internet ad revenues outstrip radio

Revenues from Internet advertising surpassed those from radio advertising last year, according to the recently released 2008 Internet Advertising Revenue Report from the Interactive Advertising Bureau and PricewaterhouseCoopers.

by Helen Leggatt

The report found Internet advertising revenues grew 10.6% to $23.4 billion in 2008, making it the third largest ad-supported medium behind newspapers and television.

Radio revenues, on the other hand, fell 9% to $19.5 billion, around $4 billion less than Internet.

The main driver of growth in Internet revenues was search, growing 19.8% during 2008, followed by display advertising (21%), classifieds (13%), lead generation (7%) and rich media (7%).

The data represents an ongoing shift from traditional to online media, said Randall Rothenberg, president and CEO of the IAB. "In this uncertain economy, where marketers know they need to do more with less, interactive advertising provides the tools for them to build deep, engaging relationships with consumers - the experience marketers gain from this will deliver dividends especially after the economy turns around," he said.

Tags: advertising revenue, classifieds, display advertising, Internet, Internet advertising, lead generation, radio, traditional media