$2 Billion Spent in Q1 on Online Ads

According to the latest edition of the Internet Ad Revenue Report published quarterly by the Internet Advertising Bureau (IAB), online advertising spending reached $1.953 billion during for the first quarter of this year. The report also stated that Q1 2000 revenues were up 9.9% over Q4 1999 and 182% up over Q1 1999.

Consumer-related spending was again the top category, accounting for 31% of spending. Other top categories were:

The IAB noted that it has expanded the categories of ad types used in the report, reflecting the wider array of message vehicles being adopted by online advertisers. In addition to monitoring banners, sponsorships, interstitials and e-mail, the report will now also track classifieds, referrals, rich media and keyword searches.

The latest spending trend, if maintained, coincides with a forecast issued on Monday that Internet advertising will grow more than fourfold to $24.4 billion by 2004, surpassing both network and cable television as well as comsumer magazines.

The report also found that the overwhelming number of revenue transactions, (94 %) continue to be cash-based with barter/trade and packaged deals accounting for 5% and 1% of total revenues respectively. Hybrid deals accounted for 48%, with CPMs or impression-based deals at 42% and performance-based deals at 10% for the quarter.

Credits: IAB