Internet advertising revenues increased 11 percent year-over-year in the third quarter of 2008, reaching nearly $5.9 billion. But sequentially, the gain in Internet ad revenues was relatively flat – at 2 percent – compared with past quarter-to-quarter figures, according to the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).
“The growth of interactive advertising that we’ve been experiencing over the past few years has stabilized due in large part to the difficult current economic climate,” said Randall Rothenberg, president and CEO of the IAB. “Interactive advertising continues to be the most measurable and cost-effective way to reach consumers, and we see more and more marketers seeking to harness its power.”
David Silverman, a partner at PwC, added: “A weakening economy will continue to be a challenge to all forms of advertising-supported media. However, the Internet should be better poised to withstand the storm, given its ability to combine performance-based advertising along with broad-based branding.”
In an effort to win back advertising dollars from the Internet, the cable industry’s Canoe Ventures initiative is creating a national platform that will provide cable operators, advertisers and programmers with improved, Internet-like functionality for targeted advertising, reporting and scheduling.
The Internet has been leeching ad revenues from cable operators, but that should change once Canoe Ventures, with the help of tru2way and additional standards and specifications, is fully operational.
Quarterly Revenue Growth Comparison – 2000-2008 YTD
Source: PwC/IAB Internet Advertising Revenue Report
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