Feeds

Search drives US online ad sales

First growth since 2000

  • alert
  • submit to reddit

Next gen security for virtualised datacentres

Sponsored-keyword search revenues in the US increased to 35 per cent of overall online advertising revenues in 2003, up from 15 per cent in 2002, according to a report sponsored by the Interactive Advertising Bureau (IAB) and conducted by PricewaterhouseCoopers.

Total Internet advertising revenues rose nearly 21 per cent last year, ending 2003 at just under $7.3bn, the first year-on-year increase since 2000. Online ad sellers reported $2.2bn in revenues for the fourth quarter of 2003, up more than 38 per cent from the same period in 2002.

There has been a continued diversification in spending on advertising formats, according to the IAB's Internet Advertising Revenue Report. Keyword search-related ads accounted for 40 per cent of 2003 fourth quarter Internet advertising revenues, up from 21 per cent for the same period in 2002.

Banner advertisements accounted for 21 per cent of total 2003 on-line ad revenues, down from 29 per cent in 2002. Classified advertising revenues accounted for 17 per cent of 2003 revenues, up from 15 per cent reported in 2002, while rich media ad revenues claimed eight per cent of 2003 revenues, up from five per cent in 2002.

Although figures for the UK and Europe are not yet available, trends in the US are being followed in Europe, said Danny Meadows-Klue, chairman of the UK Interactive Advertising Bureau.

New wave

"One of the interesting things about the keyword search sector is the way that it is bringing new advertisers online," he told ElectricNews.Net. "Even one-person micro-businesses are spending on keywords. They are realising that they can cheaply and directly reach a potential customer at the moment of greatest interest," he added.

In terms of online advertising as a percentage of overall cross-media spend in Europe, there is a lot of variation across the continent, noted Meadows-Klue. The percentage for Finland is 5 per cent, while in Greece it's 0.5 per cent.

The most interesting developments in the European online market are in the EU accession states, he said. "The Baltic region is leapfrogging ahead without having to make the same mistakes as were made in the UK and Ireland in the late 1990s. Estonia already has a figure of three per cent (for online advertising revenues)."

Meanwhile, consumer-targeted advertisers continued to dominate online ad spending in the US, accounting for 37 per cent of revenues. Spending by the media and financial industries dropped slightly, from 13 per cent to 12 per cent and from 12 per cent to 11 per cent respectively, according to the US survey.

PricewaterhouseCoopers compiled the data for the report from the top 15 online ad sellers, which account for 80 per cent of total industry revenues. IAB member companies such as AOL, Yahoo!, MSN, Google and DoubleClick account for 85 per cent of online advertising sold in the US, according to the organisation.

© ENN

Related stories

Yahoo! shows paid search pays
Online ads draw record complaints
Yahoo! and MSN to dilute Google supremacy
Wanadoo unveils Euro ad network
Online ad spending on the up

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.