Internet ad revenue for first quarter of 2008 witnessed second highest revenue ever in a quarter, according to Interactive Advertising Bureau’s research report executed by Pricewaterhouse Coopers. In fourth quarter of 2007, Internet ad revenues recorded highest at $5.9 billion, the first quarter of 2008 recorded its second highest revenue at $5.8 billion.
18.2% increase in revenues of first quarter of 2008 over same period in 2007
There is an increase in revenues in the first quarter of 2008 by 18.2% over the same period in 2007. First quarter revenue for the year 2007 is $4.8 billion and for this year revenues for first quarter alone touched $5.8 billion. Though there is rise in first quarter revenues, the growth rate is less compared to previous years. In the first quarter of 2006, revenues on internet ads is up by 37% and in 2007, rise in revenues is 27% in first quarter of their respective previous years.
Fourth quarter yielding good revenuesInternet ad companies’ performance in fourth quarter is more than the previous quarters every year. In 2007, last quarter alone brought in $5.9 billion revenues and in 2006 fourth quarter has recorded $4.7 billion which is more than all its preceding quarters. The fourth quarter of 2005 recorded $3.6 billion in revenues, which is highest in a quarter for that year.
Internet advertising revenues surpassed cable television and radio advertising
For the year 2007, Internet advertising outshined radio and cable television advertising in terms of revenues and bagged the third position in the list of top advertising mediums. Internet advertising revenues accounted for $21.2 billion, which is more than that of cable television and radio advertising, which earned $20.9 and $19.8 billion respectively. Internet advertising industry is just behind Newspaper and TV distribution in the top U.S. ad spending, in 2007.
On an average 28% rise in annual revenues
Growing awareness of Internet usage among customers and companies drafting strategies to reach them is increasing at faster rate. By taking advantage of these positives Internet advertising industry is growing at 28% on an average from the last five years. Year 2006 had 34% rise in revenues, which is highest during 2003-2007 and 2007 has witnessed 25% rise in revenues on Internet ads when compared to 2006.
It is clear that companies’ spending on Internet ads is increasing and is not confined to a particular industry. Companies from various industries are increasing spending on Internet advertising, which has the potential to reach out masses. This is driving Internet ad revenues to new highs year over year.
