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Internet ad revenue up 10.6 pct last year: report


Internet advertising revenue grew by 10.6 percent last year to a record 23.4 billion dollars

The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) report said search advertising remained the main driver of Web revenue growth last year, increasing 19.8 percent over 2007 to 10.5 billion dollars.

Display advertising such as banner ads accounted for 7.6 billion dollars, up from 7.07 billion dollars last year, the report said.

Digital video advertising meanwhile more than doubled its revenue to 734 million dollars lastyear from 324 million dollars in 2007, it said.

Internet advertising revenue totaled 6.1 billion dollars in the fourth quarter of the year, up 2.6 percent compared with the corresponding three months in 2007.

"Though some categories in the fourth quarter slowed or even dipped, reflecting the current economic challenges, the overall performance is up, confirming interactive's ever-growing importance to the successful marketing mix," said David Silverman of PricewaterhouseCoopers.

Retail, financial services, computing, and automotive were the largest online advertisers lastyear, according to the report.

The growth in Web advertising revenue bucked the trend in a tough year during which advertisers spent less on other outlets such as newspapers, magazines and television.

Overall US advertising was down 2.6 percent last year compared with the previous year

according to Nielsen Co. figures



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