The Internet is quickly outpacing advertising growth of other media, reaping $31.7 billion in ad revenue in 2011. In terms of market share, ad revenue for online is now solidly sandwiched between cable TV ($30 billion) and broadcast ($38.5 billion).
While search continues to dominate online ad dollars, accounting for 46.5 percent of online revenues last year, display-related advertising -- which includes banner ads, rich media, sponsorship and digital video -- is steadily growing. The medium now accounts for 34.8 percent of online revenues, up 15 percent from the previous year, totaling $11.1 billion, according to the IAB Internet Advertising Revenue Report conducted by PricewaterhouseCoopers.
Where does video advertising stand?
In the fourth quarter, digital video accounted for 6 percent of ad formats, an increase from the year-prior period at 5 percent. Mobile is another area experiencing explosive growth. At $1.6 billion, the medium broke through the $1 billion marker after a 149 percent increase from the previous year when revenue totaled $641 million.
"Pushing past the $30 billion barrier, the interactive advertising industry confirms its central place in media," said Randall Rothenberg, president and CEO of IAB. "Across search, display, digital video, digital provides a wealth of opportunity for brands and consumers."