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Poor growth in internet ad market confirmed

OUT-LAW News, 24/04/2001

The total value of internet advertising revenue in the US last year came to $8.2 billion, according to the Interactive Advertising Bureau. Levels in the fourth quarter had shown little change on the rest of the year.

The IAB’s Internet Ad Revenue Report is conducted by the New Media Group of PricewaterhouseCoopers. The IAB and PricewaterhouseCoopers say the levelling out of revenues is reflective of the overall slowdown in ad revenue across all media sectors, in addition to a higher revenue base.

The categories which lead online spending during the fourth quarter of 2000 were:

  • Consumer-related (32%)
  • Computing (21%)
  • Financial Services (13%)
  • Business Services (6%)
  • Media (9%)

Banner revenues decreased considerably in the fourth quarter, accounting for 40% of the quarter's on-line ad revenues (down from 46% in the third quarter and 47 % for the year) with sponsorships at 31%, classifieds 10%, referrals 5%, interstitials 5%, e-mail 4%, rich media 2%, and keyword searches 2%.

 

 

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