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IAB: Internet Advertising Reached $26 Billion In 2010, Display Grew Twice As Fast As Search

Erick Schonfeld

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Erick Schonfeld is a technology journalist and the executive producer of DEMO. He is also a partner at bMuse, a product incubator in New York City. Schonfeld is the former Editor in Chief of TechCrunch. At TechCrunch, he oversaw the editorial content of the site, helped to program the Disrupt conferences and CrunchUps, produced TCTV shows, and wrote daily... → Learn More

Wednesday, April 13th, 2011
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The Internet Advertising Bureau released its numbers for 2010 (PDF). Last year, online advertising in the U.S. grew 15 percent to $26 billion. After a 3 percent dip in 2009, growth resumed in 2010, hitting a record high. Industry revenue in the fourth quarter alone hit $7.45 billion.

Search still made up 46 percent of that total, followed by display ads at 38 percent.But display advertising grew twice as fast as search (24 percent growth versus 12 percent). Search advertising in the U.S. totalled $12 billion, with display closing the gap at $9.9 billion.

Video advertising (which is counted as part of display) now makes up 5 percent of the total. It jumped 40 percent to $1.4 billion. This was also the first year that the IAB is estimating mobile display advertising revenue between $550 million and $650 million.

Compared to other forms of advertising, Internet advertising surpassed newspaper ads in the U.S. last year ($22.8 billion) and is now second only to TV ($28.6 billion)

Here is the breakdown below

Full Year
2009		 Full Year
2010
Revenue (Ad Formats)
Search 47%
(10,698)		 46%
(12,004)
Classifieds and Directories 10%
(2,254)		 10%
(2,597)
Lead Generation 6% (1,451) 5% (1,339)
E-mail 1% (292) 1% (195)
Display-related
Digital Video Commercials 4% (1,017) 5% (1,420)
Ad banners / display ads 22%
(5,061)		 24%
(6,230)
Sponsorships 2% (383) 3% (718)
Rich media 7% (1,505) 6% (1,538)
Total display-related 35%
(7,965)		 38%
(9,906)
Total (22,661) (26,041)

Crunchbase

Company: IAB

The Interactive Advertising Bureau (IAB) is comprised of more than 460 leading media and technology companies who are responsible for selling 86% of online advertising in the United States. On behalf of its members, the IAB is dedicated to the growth of the interactive advertising marketplace, of interactive’s share of total marketing spend, and of its members’ share of total marketing spend. The IAB educates marketers, agencies, media companies and the wider business community about the value of interactive...

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