IAB/PwC Release First Half 2005 Internet Ad Revenue Figures
Q2 Reports close to $3 Billion in Internet Advertising Revenues
First Half ’05 reaches $5.8 Billion – 26% increase over ’04
On September 26, 2005, during the MIXX Conference and Expo, the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) released Internet Advertising Revenues covering Q2 and the first six months of 2005. Internet advertising revenues (U.S.) for the first six months of 2005 were approximately $5.8 billion, a new record and a 26% increase over the first half of 2004. Internet advertising revenue totaled $2.985 billion, just shy of $3 billion for the second quarter of 2005, representing a 26% increase over same period 2004. Q2 2005 revenues represent a 6.6% increase over Q1 2005.
The IAB sponsors the Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PwC. The full report is issued twice yearly for full and half-year data, and top-line quarterly figures are issued for the first and third quarters.
2Q ’05 Nearly $3 Billion, or +26%
THE IAB MEASUREMENT EXPO: Find out all you need to know about the Measurement Auditing and Certification Process
The IAB is holding the first-ever Measurement Expo in New York on November 10. This one-day event is intended to guide IAB members, as well as advertisers and agencies, about the importance of measurement certification as well as present the capabilities of the primary vendors involved in the auditing and certification process.
The IAB is producing this expo as a service to the Interactive marketplace so registration is FREE. Please register now at www.iab.net/measurementexpo
Each vendor will deliver a thirty-minute presentation of their specific process. This will be followed by a period of Q&A and an audience-only roundtable discussion where you can debate and deliberate with your peers on the merits of each vendor.
ABOUT THE MEASUREMENT GUIDELINES:
MIXX CONFERENCE AND EXPO
MIXX kicked off with a full house in the Hudson Theater on Monday morning with great attendance into Tuesday afternoon. Attendees included but are not limited to an impressive list of senior decision makers from the following brand marketers and agencies: Arnold, Astra Zeneca, Avaya, Avenue A, Bell South, Black & Decker, Budget, Choice Hotels, Cingular, Citigroup, Clarins, Coca-Cola, Colgate, Diageo, Digitas, Ernst & Young, Euro RSCG, FCB, Fidelity, Foot Locker, GE, GM Planworks, IBM, Intel, Johnson & Johnson, L’Oreal, McCann, McKinney, Media Contacts, Mediavest, Modem Media, Philips, Pepsi, Samsung, Southwest, TD Waterhouse, Wells Fargo, Y&R and many others
Immediately following the conference, we sent out a survey to all attendees and have received great feedback. 93% of survey respondents rated the overall event from “Good to Excellent” with content rated at 90% and speakers at 93% on the same continuum.
Here’s what some of the attendees are saying:
“Excellent conference. Engaging, diverse and informative speakers and panels.”
In addition to the positive feedback we have received from attendees, we succeeded in breaking through the clutter of Advertising Week and garnered positive press coverage for the industry as a whole in the following: NY Times, Advertising Age, Adweek, iMedia Connection, Citigroup Analyst report, RBC Capital Markets and others. Some highlights from the coverage include:
CITIGROUP ANALYST REPORT:
“We saw a healthier and a better-integrated ecosystem for online advertising consisting of marketers (CPG and others), traditional and non-traditional ad agencies, and online advertising companies. Overall, we saw further evidence of increasing traction and secular growth for online advertising, especially in paid search.
During the event many interesting topics on online advertising and search were presented and discussed. Some of the hot topics were: overall online advertising growth trends, trends in paid online search, online advertising trends by 2010, views of leading marketers and traditional agencies on online advertising, the impact of broadband on brand advertising, and rich media.”
RBC CAPITAL MARKETS:
Ford Shifting 15% of Ad Budget Online: Last month, Ford announced that it plans to shift 15% of its $1 billion + online advertising budget online in the 2005-2006 broadcast year, up from 10% in the 2004-2005 broadcast year, we believe. The shift of ad dollars is likely to come at the expense of print, magazines, and national network and broadcast television.
Pepsi Online Spend Up Significantly In 2006: The CMO of Pepsi North America highlighted that the company currently spends around between 5-10% of its budget online (we estimate closer to 6-7%), but by next year it should be closer to 10%, which is a ~50% increase y/y..
NEW YORK TIMES - What's Cool Online? Teenagers Render Verdict
The Interactive Advertising Bureau gathered 10 teenagers onstage at the Millennium Broadway Hotel to informally evaluate the creativity and effectiveness of three teenager-oriented interactive marketing campaigns, all before an audience of hundreds of industry executives.
IAB and Adweek Magazines Announce First-ever MIXX Award Winners
The MIXX Conference concluded with the first-ever MIXX Awards to honor exceptional Interactive advertising and marketing (www.mixx-awards.com/gallery). Comedian Richard Jeni emceed the multimedia extravaganza, which was attended by senior executives from leading agencies, advertisers and publishers.
The MIXX Awards was judged by an independent panel of some of the world’s most esteemed brand marketers who have direct control and influence over some of the largest advertising budgets. It is the only competition to evaluate all critical components of the Interactive marketing mix, including strategy, creative, execution and results.
MIXX Award Winners:
IAB AD OPS SUMMIT
Dr. Ben Vinod, the Chief Innovator from Sabre Airline Solutions, opened the day to a full-house with an insightful view of revenue management across various industries, including airline, lodging, and car rental and shared his thoughts on how the same principles could be applied to online advertising. Panel discussions throughout the day focused further on improving inventory and revenue management, knowing your customer, and how new technology and convergence of channels may affect the future of ad operations. IAB Vice President of Industry Initiatives, Leo Scullin, walked the attendees through current IAB initiatives that will be affecting our members in the coming months, including measurement certification, broadband guidelines, and the Advertising Expenditure (AdEx) service. To close out the event, an open forum for setting next year’s agenda brought recruitment and retention to the forefront of managers’ concerns as well as resolving billing and measurement discrepancies, facilitating communication between publisher and agency ad ops staff, and building a knowledge base for revenue management best practices.
Once again, the IAB Annual Member Meeting provided new insights and great networking to all the executives in attendance. This one-day event featured discussions on sales strategies, threats to our industry and a visionary look into the future of interactive advertising.
Keynotes, Doug Weaver and Warren Greshes, provided thought provoking sales tips and energized the crowd on the awesome potential facing Interactive Advertising today. Our panel of media buyers and marketers provide for a lively interaction with the audience hearing first hand about what these two critical constituencies need and want from our industry. Marketers from IBM, HP and TD Waterhouse spoke about the challenges they face in arguing for bigger budget allocations. Carat, Media Contacts, Universal McCann and Digitas were on hand to provide our attendees with ways to work more effectively with the agencies. We heard from DoubleClick, Dynamic Logic and Tacoda on some of the threats that are facing our market including ad blocking, cookie deletion and the impact of ad ware and spyware. Closing the day were top executives at CNET, Cool Savings, Google, Dow Jones Online and CondeNet sharing their visions of where the industry will be in 3-5 years.
IAB COMMITTEE UPDATE
The next Hispanic Committee Meeting will be on 11/1/05 – this meeting will focus on finalizing the the results of the Hispanic Pioneros Campaign, which honors those individuals who have made significant contribution to furthering the Hispanic Marketing efforts in Interactive Advertising. In addition the committee will discuss 2006 initiatives.
Lead Generation Committee:
The next Lead Generation Committee Meeting will be on 11/2/05.
If you would like more information on any of the committees, please email [email protected]
WHERE IN THE WORLD IS THE IAB
There are approximately 17 IAB’s in various regions around the world, including:
In addition, there are pending IAB’s in Australia, Russia, Columbia and Brazil. We are continually working to strengthen our relationships with these chapters and to establish new IABs by leveraging our member companies’ presence in other countries. If you would like to know more, or tell us where you might be helpful in creating new chapters, please contact Erica at [email protected].