Interactive Advertising Bureau (IAB) Report on Internet Advertising Revenue


What is IAB?
Interactive Advertising Bureau (IAB) is an organization established in 1996 and is headquartered in New York, USA. This organization legally supports Internet advertising companies, conducts research every year and sets up standards to the Internet advertising industries.

According to IAB, in the year 2011 the half yearly revenue from Internet marketing was $14.9 billion and annual revenue in 2011 was $31.7 billion. This shows that the revenue in the second half of the year (2011) was $16.8 billion. This clearly indicates how fast Internet marketing business is growing. This further increased by 14 % in 2012, making a revenue of $17.0 billion for the first six months.

Annual revenues of Internet marketing
The trends in annual revenues from Internet marketing since 2007 (last five years) which was observed in USA, as per the Interactive Advertising Bureau (IAB) were as follows:

  • In 2007, the total revenue made from Internet marketing was $21.2 billion.
  • In 2008, the annual revenue was $23.4 billion.
  • In 2009, it stood at $22.7 billion. There was slight downfall on the Internet advertising market in this year due to rumors of recession.
  • The effect of recession did not last long on the Internet advertising market, as the revenue generated in 2010 rose to $26.0 billion.
  • In 2011, the revenue from Internet marketing was $31.7 billion.
  • In 2012, (January-June) that is half yearly revenue of Internet marketing was recorded as $17.0 billion.

Analysis
From these figures, it is very clear that the revenue made by companies from Internet marketing is increasing continuously year by year. IAB has analyzed some interesting facts from this revenue report, which are as follows:

  • The revenues of the top 10 companies made from Internet marketing has increased from 72% to 73% from 2011 to 2012.
  • Revenues of the companies ranking from 11th to 25th are consistent contributing 9% of share to the total revenue generated on Internet marketing.
  • Companies ranking 26th to 50th are also consistent with 8% of the total revenue on Internet marketing.
  • Among the Internet marketing, search marketing and display marketing made a major contribution to the total Internet marketing revenues with 48% and 21% respectively.
  • Least contributors among the Internet marketing types are email marketing and rich media with 1% and 3% respectively.

The above reports clearly indicate the trends in growth of Internet advertising year over year. It is becoming more popular and the best way to promote businesses of all kinds.

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