US Online Ad Revenue at $5.5 Billion in Q1

    June 5, 2009
    Chris Crum

Internet advertising revenues in the US reached $5.5 billion for the first quarter. This is according to the Interactive Advertising Bureau and PricewaterhouseCoopers. This is a 5% decline from a year ago.

The Internet Advertising Revenue Report, the basis for the information, is considered the most accurate measurement of interactive advertising revenues with the data compiled directly from information supplied by companies selling advertising on the Internet.

IAB - Ad Revenue Growth
"Interactive advertising has taken its rightful place as a fixture on marketing plans across sectors, which means we aren’t immune to broader economic trends," says Randall Rothenberg, President and CEO of the IAB. "Nevertheless, consumers are spending more and more time with interactive media."

"For this, and other reasons, interactive media continues to gain share of marketing spend," he adds. "We’re confident that growth will resume as the U.S. economic climate improves. Interactive advertising is the most accountable way to reach consumers—and in this economy, digital media will be a core component of any successful marketing campaign."

While online ad revenue may be down from last year, it’s important to look at the whole advertising picture, and just how much of it is actually taken up by online ads.

PwC Assurance partner David Silverman notes, "Current economic conditions are clearly challenging. Nonetheless, interactive media continues to consume a larger piece of the overall advertising pie."

Online advertising provides a much more cost-effective means of reaching an audience than other forms of marketing. For one, there are so many different ways to reach an audience online, and the rise of social media (along with mobile) has been particularly instrumental in marketing budget allocations.