Online Ad Revenues in 2007 up 26%; Growth Still Slow

By Iris Dorbian
05/16/2008

According to the Interactive Advertising Bureau, online advertising revenues for 2007 came to a total of $21.2 billion, up 26% from the $16.6 billion internet advertisers spent the previous year. Revenues for the fourth quarter in 2007 were $5.9 billion, up 13% over 2007’s third quarter and 24% over 2006’s fourth quarter. However, despite these highs, growth is still relatively slow.

Yet the report, which IAB worked on with PricewaterhouseCoopers, which calculated the figures, shows the resilience of online advertising as traditional media has been affected by the economic downturn. Segments that make up internet advertising, like display, search, classifieds and lead generation, showed the following results in 2007 according to the study:

  • Display (including sponsorship, video) was $7.07 billion, up 34 percent;
  • Search came in at $8.8 billion, with a 41% increase;
  • Classifieds grew 16%  in 2007 to $3.3 billion; and
  • Lead generation limped to only 7%  to $1.5 billion