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10 October 2007

Internet advertising growth slows, but it’s still phenomenal

A usual the past quarter shows record revenues for internet advertising, but the growth rate is considerably down, around 25% rather than the 30% plus growth of the past two years.

US research conducted by PricewaterhouseCoopers for the IAB (Internet Advertising Bureau) for the past quarter shows revenues up to $5.1 billion a 4% rise from the immediately past quarter.

Year-to-date Internet advertising revenues were $10 billion, up 26.4% from the $7.9 billion reported for the same six-month period in 2006.

Consumer related advertising continues to dominate at 54% up from 49%, especially ads which drive the retail economy. Within the Consumer category the biggest sub-categories are Retail (46%), Automotive (21%), Leisure (13%) and Entertainment (9%).

The top fifty advertising buying companies still make up a huge amount of the total internet advertising base, around 91% of online advertising in total.

The breakdown of advertising types is still led by search, at 40%, with display next at 22% and classified at 17%. Broadband Video advertising remains tiny at 1% or $100 million.