Slight Fall in US Online Adspend

07 December 2001

Online ad revenue slipped 4.1% between the second and third quarters, from $1.868 billion to $1.792bn, according to new figures from PricewaterhouseCoopers’ New Media Group, released by the Interactive Advertising Bureau earlier this week.

Between January and September, internet advertising generated $5.55bn, down 8.4% on the $6.06bn recorded for the same period in 2000.

There were promising signs for the online ad industry. Said New Media Group’s chair Tom Hyland: “It appears that traditional advertisers are devoting a greater percentage of their budgets to online advertising, shifting budgets to mirror the shifting consumption of online media by their customers, and are loath to desert the medium that they all know holds the greatest future potential for them.”

The vast majority of web advertising revenues are the preserve of the big media firms, the top ten of which gained 75% of internet adspend.

Despite declining slightly since Q2, banner ads are still the online format generating the most revenue, accounting for 35% of the total. Sponsorships followed with 25%, classifieds on 17%, slotting fees on 7% and key word searches on 5%. Interstitials/superstitials, email and rich media all registered 3%, with referrals accounting for just 2%.

News sources:; IAB website