|incorporate llc - Internet advertising in the United States recorded $2.2 billion in revenue for the fourth quarter of 2000, bringing total online revenue for the year to $8.2 billion, according to the Interactive Advertising Bureau's (IAB) Internet Ad Revenue Report which is conducted independently by the New Media Group of PricewaterhouseCoopers. While the $2.2 billion shows an increase of 9 per cent over the $1.986 billion for the third quarter of 2000, the percentage increase is markedly lower than historical levels, and according to the IAB and PricewaterhouseCoopers, it is reflective of the overall slowdown in ad revenue across all media sectors, in addition to a higher revenue base.
"The turbulence that has affected all advertising sectors in the past six
months has also quite naturally impacted the Internet. While we have
continued to grow as an industry, that growth has been tempered by the times,
and I would expect that we will see this reflected in future reports," noted Robin Webster, President & CEO of the IAB."I believe that all interactive media have the ability to react quicker with
more creativity than more traditional advertising platforms,
offer advertisers compelling new formats and channels to reach consumers.The new Interactive Marketing Unit guidelines that the IAB issued recently are a case in point. Their usage is growing and our members are reporting indications of success and acceptance by consumers. I am confident that we will continue to see the growing emergence of new ad formats and the integration of overall campaigns, with the Internet becoming an increasingly important part of the media buy."
Commenting on the report, Tom Hyland, Chair, PricewaterhouseCoopers New Media Group noted: "The message to be taken out of this report is that the Internet is a strong advertiser medium. As one might expect, the advertising community is intent on reaching the 140 million plus online audience, but they are being more selective in their approach. That is why we see a higher concentration of ad spending in the top tier sites. Like most ad-supported media, this adverting medium is not a level playing field and the big continue to get bigger.