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BizReport : Advertising : September 30, 2011

Internet ad revenues soar in US

New figures released by the Interactive Advertising Bureau and PricewaterhouseCoopers show U.S. online ad revenue rose significantly again in the first half of 2011 to a record-breaking amount.

by Helen Leggatt

U.S. online ad revenues grew by 23% YoY reaching almost $15billion in the first six months of this year.

"Fueling this growth is the ability of advertisers to correlate performance and results with the dollars they are investing," said David Silverman, a partner at PricewaterhouseCoopers LLP.

Almost half (49%) of revenue contributions came from search marketing, a 27% YoY increase, generating $7.3billion. Display advertising accounted for over a third (37%) of revenues at $5.5billion.

The report shows advertisers continue to favor performance-based advertising over impression-based ads - 64% of ad revenue was performance-based, 31% was impression-based and the remaining 5% was from hybrid models.

"The remarkably resilient performance of interactive advertising so far in 2011 demonstrates that more marketers are placing big bets on digital to tell their brand stories," said Randall Rothenberg, President and CEO, IAB.

"This welcome news, in light of the weakness in a large part of the rest of the U.S. economy, confirms that the innovations happening in interactive marketing deliver great value to the industry and to the consumer."

Tags: advertising revenues, display advertising, search marketing, U.S.

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