Internet Ad Revenues Set Record

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Internet advertising revenues for the first half of 2007 reached nearly $10 billion, setting a new record representing an increase of nearly 27 percent over the same period last year, according to a new report from the Internet Advertising Bureau and PriceWaterhouseCoopers.

Revenues for the second quarter of 2007 reached $5.1 billion, surpassing the $5 billion mark for the first time in a quarter, a 25 percent increase over the same period in 2006. The highest percentage of online ad spending went to search with 41 percent, followed by banners/display receiving 21 percent and classifieds with 17 percent.

Internet ad spending was concentrated among the top 10 online sellers and accounted for 70 percent of all money spent. Ninety-one percent of ad spending was spent with publishers in the top 50.

Performance deals were the leading pricing models followed closely by CPM deals. In the first half of 2006, performance deals made up 47 percent of all online spending, and CPM 48 percent. In 2007 performance deals accounted for 50 percent of online spending and CPM had 45 percent.

Randall Rothenberg, president and CEO of the Internet Advertising Bureau said that the IAB members are happy that the fast growth rate continues and that its because interactive media engages audiences and can be accounted for at the same time.

Internet Ad Revenues Set Record
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