Data from the Interactive Advertising Bureau shows that online advertising sales revenue for the first half of 2012 surged by 14 percent, achieving a record-breaking highpoint of $17 billion.
The growth, which occurs in the context of initiatives to improve communications between ad agencies and startups, is encouraging news for the jobbing internet advertising sales manager and search engine marketing specialist. It also happens to be good news for just about everyone else, too, because it’s internet advertising that keeps the web free of charge. IAB Vice President Sherrill Maine welcomed the double-digit growth as “a significant achievement”, adding, “There is evidence that CPMs are maintaining, and even increasing, further substantiating the vitality of the internet ad market.”
Mobile advertising takes Olympian stride
Digital video ad revenue was also on the rise over the same period, climbing by 18 percent to $1 billion, while search revenues leaped by 19 percent during Q1 alone to reach $8.1 billion.
More modestly, display ad revenue rose by 4 percent, just tipping the scales at $5.6 billion.
However, if these rates evoke metaphors like “leaping” and “surging”, the hike in mobile ad revenue was positively Olympian, virtually doubling to a grand total of $1.2 billion. That’s a small total figure compared to its older relatives, but it represents a spectacular 95 percent increase, signaling that mobile site and app models that rely on advertising are really coming into their own.
A comparison with digital advertising may be illuminating here. In its early days between 1996 and 2000, digital ad revenue made triple-digit annual growth figures, ranging between 110 percent and 320 percent. If mobile advertising follows the same pattern, there’s massive scope for growth – a prospect not lost on the Association of Online Publishing, which recently drew attention to the immense untapped potential in the mobile marketplace.
Which ad models?
The IAB data also includes some interesting trends concerning different publisher revenue models. Pay-per-click and other performance based ads grew three points between 2011 and 2012 from 64 percent to 67 percent, while banner ad revenues and related impression based advertising held steady at 31 percent. Hybrid models fared less well, shrinking by 2 percent.