| NEW YORK
NEW YORK Oct 4 U.S. online advertising revenue
surged to a new high of nearly $10 billion in the first half of
the year, rising 27 percent from a year before, according to
data released on Thursday.
The figures from the Interactive Advertising Bureau (IAB)
and PricewaterhouseCoopers (PwC) underscore how quickly
spending by marketers is shifting to the Internet, often at the
expense of traditional media like newspapers or radio.
"The torrid growth of interactive advertising revenue
persists and these results are really no surprise but very
welcome news," IAB Chief Executive Randall Rothenberg said in a
Second-quarter revenue rose 25 percent from a year earlier,
the data showed, to a quarterly record of $5.1 billion.
"Advertisers recognize the continued growth in the online
audience and the growing opportunity to target and monetize
that audience," said Pete Petrusky, a director of the
entertainment, media and communications practice at
One outgrowth of the boom is that media and technology
companies are building up their online advertising businesses,
partly through acquisitions.
Among recent deals, Google Inc (GOOG.O) (GOOG.O) agreed to
pay $3.1 billion for ad serving and tracking company
DoubleClick, while Microsoft Corp (MSFT.O) bought online
marketer aQuantive Inc. for $6 billion.
Jean-Philippe Courtois, head of Microsoft International,
said this week that the online advertising market was growing
between 15 and 20 percent a year worldwide while the global
advertising market was gaining only between 2 percent and 3
At the same time, competition for those advertising dollars
is growing, as firms ranging from telephone companies to cable
operators try to court marketers in an industry long dominated
by television networks, newspapers and radio broadcasters.
For now, the majority of Internet spending is highly
concentrated on the most popular sites.
The top 50 Web sites accounted for more than 90 percent of
the revenue from online advertising spending in the first half
of the year, and the top 10 sites accounted for 70 percent,
according to the IAB/PwC data.
Search advertising, led by Google, remained the most
popular form of online marketing and accounted for 41 percent
of the money spent at $4.1 billion in the first half of 2007.
Graphic display advertising, such as banners, grew to
account for 32 percent at $3.2 billion, compared with $2.4
billion in the year-earlier period.