Internet Ad Revenue At Record High In '08, Passes Radio NEW YORK -- March 31, 2009: The Internet Advertising Bureau and PricewaterhouseCoopers report that Internet ad revenues rose by 10.6 percent in 2008, to a record-high $23.4 billion, up from $21.2 billion in 2007. That's compared to $19.5 billion in 2008 revenue for radio as reported by the RAB, down 9 percent from '07.

In the fourth quarter of 2008, Internet revenues came in at $6.1 billion, up 2.6 percent from $5.9 billion in Q4 '07 and also a record high.

"We are seeing an ongoing secular shift from traditional to online media as marketers recognize that ad dollars invested in interactive media are effective at influencing consumers and delivering measurable results," said IAB President/CEO Randall Rothenberg. "In this uncertain economy, where marketers know they need to do more with less, interactive advertising provides the tools for them to build deep, engaging relationships with consumers -- the experience marketers gain from this will deliver dividends, especially after the economy turns around."

Search advertising is the big driver of online ad growth, says the IAB, moving up 19.8 percent in 2008. Digital video is still relatively small, but growing fast -- up 126 percent, to $734 million in 2008 from $324 million a year before. Banner ads and lead generation were up in 2008, while rich media ads, sponsorships, classifieds, and e-mail advertising were all down somewhat on the year.

The leading categories for online ads last year were retail, financial services, computing, and automotive, the same as in 2007. PricewaterhouseCoopers Partner/Assurance David Silverman said, "Though some categories in the fourth quarter slowed or even dipped, reflecting the current economic challenges, the overall performance is up, confirming interactive's ever-growing importance to the successful marketing mix."