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Online Advertising Hits $31.7 Billion In 2011


Internet ad spending grew 22% in 2011 to $31.7 billion, according to the latest data from the Interactive Advertising Bureau and PricewaterhouseCoopers. That growth rate tops last year’s 14.5%, indicating that digital advertising continues to ramp up after a recession-induced setback in 2009.

For the fourth quarter of 2011, online ad spending hit nearly $9 billion — up 20.4% from a year ago, and 14.7% from the third quarter.

The IAB said mobile advertising — which it began tracking in 2010 for the first time — was the fastest-growing category in 2011, jumping 149% to $1.6 billion from $641 million in 2010. Mobile also doubled from 2.5% to 5% of total online ad dollars this year.

Digital video advertising — which the IAB includes as part of display advertising — saw strong growth as well, rising 29% from $1.4 billion to $1.8 billion. Overall, display spending rose 15% in 2011 from $9.6 billion to $11.1 billion.

Search advertising enjoyed even bigger gains, growing 27% from $11.7 billion to $14.8 billion. It continued to make up the largest proportion of online ad spend: at 46.5%, up from 44.8% in 2010. That increase came at the expense of display, which declined from 37% in 2010 to 34.8% last year.

Retail advertisers remains the largest category of Internet ad spending, accounting for 22% in 2011, or $7.1 billion, up slightly from 21% ($5.5 billion). Financial services accounted for 13% ($4.1 billion), telecom, 12% ($3.9 billion), automotive, 11% ($2.9 billion), leisure travel, 8% ($2.4 billion), and computing 8% ($2.7 billion). Those proportions all held fairly steady through 2011, varying only by a percentage point here and there.

Fueled by search and mobile spending, performance-based advertising gained ground in 2011, accounting for nearly 65% of total online ad dollars, up from 62% in 2010. CPM-based advertising dipped slightly from 33% to 31.3%, while dollars going to hybrid-priced models also declined from 4.8% to 4.2%.

By its reckoning, the IAB said the $31.7 billion in Internet advertising in 2011 eclipsed the $31 billion in cable TV advertising last year, making the category second only to broadcast TV ($38.5 billion). “Pushing past the $30 billion barrier, the interactive advertising industry confirms its central place in media,” said IAB President and CEO Randall Rothenberg, in announcing the 2011 figures Wednesday.

via MediaPost Publications Online Advertising Hits $31.7 Billion In 2011 04/19/2012.

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About Bob Innes

Who am I and what I do best! I am a skilled Sales and Marketing team player known for performing behind the scenes miracles that increase base distribution, improve customer relationship management, exceed annual sales volume,and profitability for Consumer Packaged Goods companies. And I've been doing it for over 15 years. My successful contributions include such clients as Kraft Foods, Mars, Bumble Bee Foods, Unilever, Johnson and Johnson and SC Johnson, and JM Smuckers.

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