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Sunday, May 18

IAB Report: Search Marketing Defies Recession Trends

Recession - what recession? According to a new report out by IAB (Interactive Advertising Bureau), Search Marketing and Internet Advertising continue to grow at impressive rates unlike their traditional media counterparts.

The IAB US Internet Advertising Revenue Report for 2007, which has just been released, details a story of continued growth across most areas in the internet advertising arena.

Keyword based Search Marketing owned the lion-share of 2007 internet advertising revenue; generating $8.8 billion. According to the report:

"Search revenue accounted for 41 percent of 2007 full year revenues, up from the 40 percent for the full year 2006. Display advertising, Classifieds, and Lead Generation accounted for 34 percent, 16 percent, and 7 percent of 2007 full year revenues respectively."

David Silverman of PriceWaterhouseCooper (partners in the report), points out how internet advertising has defied the recessive trends

"Despite the current state of economic uncertainty, 2007 was another record year and the 13th consecutive record quarter. Interactive advertising is not just the future, it is the here and now, as it represents a meaningful and growing component of US advertising and marketing spend."

Consumer related marketing continued to lead the way, with 55% of all internet spend. Of the key category areas, retail held 49 percent of fourth quarter revenues, followed by Automotive (22%), Leisure (travel, hotel & hospitality) at 13%, and Packaged Goods at 8 percent.

So what does the report mean for businesses owners? It confirms that internet advertising is growing as the marketing channel of choice, even in the face of difficult economic times.

It reinforces the belief that more and more business owners are relying on internet advertising in recessive times as it offers low costs of entry, high accountability, and the ability to generate rapid results

Access the report here: IAB US Internet Advertising Revenue Report for 2007

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IAB Report: Search Marketing Defies Recession Trends

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