The Interactive Advertising Bureau (IAB) registered a huge leap in the online ad revenues from $16.8 in 2006 to $21.2 in 2007. It is an impressive increase of 26%, though the IAB in February had expected a sum of $21.1 billion for the expenses of web ads. It also projected the rise in Q4 revenues by 13% over Q307 and by 24% over Q406 resulting in $5.9 billion for Q4. The upward climb displayed by the 2007 and Q4 statistics is not completely reassuring because of the hurdles posed by the Law of large numbers. Some comfort can be drawn from the fact that from the online revenues of 2005, there has been a gain of 35% in the $16.8 billion generated in 2006. The year-over-year gain of $4.8 billion of Q407 is 32%.
The economic slowing down has adversely affected the expenditure on the usual media ad. However the completed revenue figures of 2007 by the IAB also present the stronghold of online advertising. The IAB and Pricewaterhouse Coopers in analyzing the different segments of internet advertising including search, display, classifieds and lead generation demonstrated varying degrees of success.
The break up of various segments of internet advertising is as follows:
Display(including sponsorship, video) : $ 7.07 billion (a rise of 34%)
Only display : $4.4 billion (a rise of 21%)
Search : $8.8 billion (a rise of 41%)
Classifieds : $3.3 billion (a rise of 16%)
Lead generation : $1.5 billion (a rise of 7%)
Meenakshi Wali Business Development Head and Co- founder Rupiz Media states, "Economic Recession is ineffectual in causing any permanent damage to the flourishing industry of online advertising."
As the Internet provides a direct response system, its efficiency in online advertising will continue to remain unparalleled.
Rupiz Ads
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