Online Video Advertising Revenue Grows At Record Pace – Up 31 Percent In First Half of 2010

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Internet Advertising revenues increased 11.3% overall for the first half of 2010 and digital video accounted for 5% or roughly $627 Million of the $12.1B for the period. The research, conducted by PwC for the IAB, doesn’t fully breakout Digital Video, yet, and shows that Rich Media and Digital Video combined seem to have retained their 11% share which they reached last year.Overall for the first six months of the year, performance-based pricing lead the way with over 60% of revenues, CPM continued its decline that first started in 2006 and now accounts for about 35% with hybrid pricing taking up the final 4% or so.

Digital video appears to have been stable, percentage wise, in both the first and the second quarter. In Q2 2010 it was 5% or roughly $332M of the overall. When compared to Q2 2009  (roughly $216M) it showed growth of $94M for that period. That’s a massive 65%.

In regards to the first half 2009 vs 2010 Digital Video saw 31.4% growth in revenue. ($477M vs. $627M = $150M growth). That’s still a pretty steep growth curve. Digital video continues to experience record growth, this year achieving the highest half-year performance ever.

“Interactive advertising revenue is on a strong upward trajectory,” said Sherrill Mane, SVP, Industry Services, IAB. “Nearly all types of ad formats are showing positive movement and marketers across all advertising categories, most notably consumer packaged goods and pharmaceuticals, are increasing their investment in digital media.”

Back to the overall numbers, the first half of 2010 broke a record for most revenue in a six month period. This is also the highest second-quarter revenue on record, up 13.9 percent over the same period of 2009. The full report can be had from the IAB Research section.

Advertising Formats: Search and Display-related ads continue to be leading formats.

($ millions if not indicated):FH 2010
FH 2009
Search47% ($5,747)47% ($5,148)
Display Related:36% ($4,356)34% ($3,759)
-Banner Ads23% ($2,744)22% ($2,394)
-Rich Media6% ($743)7% ($704)
-Digital Video5% ($627)4% ($477)
-Sponsorship2% ($242)2% ($184)
Classifieds10% ($1,262)10% ($1,116)
Referrals/Lead Generation5% ($642)7% ($728)
E-mail1% ($120)1% ($149)
Q2 2009 vs. Q2 2010


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