15.2% Increase in Online Advertising Revenue in First Quarter of 2008

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15.2% Increase in Online Advertising Revenue in First Quarter of 2008

Online usage is increasing for both personal and professional activities as the technology is providing new dimensions towards passing the information and increase in revenues. According to IAB Report, in 2008 Internet advertising revenue increased by 15.2% when compared to first half of 2007. Online advertising revenue for the year 2007 was .2 billion.

Online advertising revenue increased by 15.2%
Online ad revenue grew steadily for the first half of 2008. In the first half of 2007 and 2008, the online ad revenue was .9 billions and .8 billions respectively. The revenue increased by 15.2% in 2008 from 2007. In 2006 the growth rate was 37% when compared to 2005. Increase in online advertising campaigns lead to the increase in revenue.

Ad revenue decreased in second quarter by 0.3%
Growth rate changes from period to period or from time to time. In 2008, first quarter online ad revenue was .76 billions and in second quarter it is .745 billions. There was a small decrease by 0.3% between first and second quarters. The growth rate between first and second quarters was 5.2% in 2007. Online ad revenues raised 13% for second quarter of 2007 but decreased by 0.3% from first quarter in 2008.

Search related ad revenues increased by 24%
Search related ad revenues are constantly increasing the share in online advertising revenue. Search ad revenues for first six months of 2008 was .1 billions and was .1 billions for the same period in 2007, with an increase by 24%. Search ad revenue accounted for 44 percent in second quarter revenues of 2008 and it was 40 percent for the same period in 2007.

Display related ad revenues increased by 19%
Display related online advertising revenue for first six months of 2008 was .8 billion and for the same period in 2007 the revenue was .2 billion. Overall display related ad revenues increased by 19% from first half of 2007 to 2008. Display related revenues include banner ads, rich media, digital video and sponsorship. Except sponsorship, there is increase in revenues for all types of online advertising.

Top 50 companies have 90% market share in online advertising revenue
Online advertising revenue for top 10 companies hold 70% of market share and top 25 company’s hold 81% of market share while top 50 companies holds 90% in the first quarter of 2008. The market is concentrated among top 50 companies because about 90% of market share in online advertising revenue is with them.

52% of online advertising revenue for performance deals
There are different pricing models and each model has different online advertising revenue. Online advertising revenue for performance deals increased by 2%, from 50% in first quarter of 2007 to 52% in first quarter of 2008. For CPM pricing model, there is a decrease in 1% of online revenues from 45% in first quarter of 2008 to 44% in second quarter and same case with Hybrid pricing model, which decreased to 1% from 5% to 4% for the same period.

In the first half of 2008, online ad revenue growth is positive but there is some decline in growth rates in the period. With increase in use of internet, the marketers and consumers the interactive advertising can increase to new heights. Online advertising can achieve strong growth with unique efficiency and effectiveness of ad campaigns. Despite of environmental pressures, there is a good significant growth in overall online advertising industry.

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