The Interactive Advertising Bureau (an industry group) and PricewaterhouseCoopers released their quarterly survey regarding Internet advertising revenues. The report indicates that the U.S. recorded a record $31 billion in Internet ad revenues for 2011. This was up 22% from 2010’s $26 billion spent on Internet ads.
Approximately half of the Internet ad revenues come from search related activities. One sector that is experiencing high growth is mobile device advertising. This sector reported $1.6 billion in revenues, compared to $600 million in 2010. Retailers were the biggest spenders on Internet ads, spending $7.1 billion or 22% of the total spent on Internet advertising.
We should expect further growth in Internet advertising due to (i) continuing growth in Internet usage, (ii) ongoing reductions in print media, and (iii) DVR boxes which allow viewers to fast forward television commercials. It will be interesting to watch how marketing companies and advertisers use their creativity to capture Internet audiences’ attention.