The Interactive Advertising Bureau and PricewaterhouseCoopers announced that Internet advertising revenues in the US reached an estimated new record of $4.2 billion for the third quarter of 2006. From the press release:
“Interactive advertising, with its eighth consecutive quarter of growth and the largest single quarter ever, is on pace for its biggest year. This growth follows the trend of where consumers are spending their media time and the unique ability of Interactive advertising to effectively target and monitor ad campaigns,” said David Silverman, Partner, Assurance, PricewaterhouseCoopers.
The UK market is smaller, of course, but is also growing strongly. The IABUK reported at the beginning of October that online advertising sales for the first half of 2006 approached £1bn, at £971m. The 40.3% year-on-year growth meant that online ads in the UK now represent 10,5% of the advertising market, and is considerably larger than the radio, outdoor and consumer magazines sectors, and is approaching the share taken by national newspapers (11.4%). In fact, while online ads showed strong growth, TV, press, radio and direct mail all declined in the same period. IABUK anticipated that online would overtake national newspapers by the end of 2006.
I was pleased to see that spending on interruptive formats, including pop-ups, is declining and now represents 0.7% of all online ads. Somehow the annoyance factor remains substantially higher than 0.7% – possibly because some substantial users of pop-ups don’t report statistics to the IAB?
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