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Internet advertising revenues in the United States totaled a record $10.31 billion in the fourth quarter of 2012, an increase of 12% from the third quarter of 2012 and up 15% from the fourth quarter of 2011, according to a report by IAB and PwC.

Mobile revenue surged 111% in 2012 to $3.4 billion, building on 2011’s record-breaking 149% year-over-year rise to $1.6 billion. Mobile accounted for 9% of total Internet ad revenue in 2012.

Below, additional key findings from the IAB Internet Advertising Revenue Report:

Search and Display Continue to Lead

  • Search revenues in 2012 totaled $16.9 billion, or 46% of 2012 revenues, up 14.5% from $14.8 billion in 2011.
  • Display-related advertising revenues in 2012 totaled $12 billion, or 33% of 2012 revenues, up almost 9% from $11 billion in 2011.
  • Digital video brought in $2.3 billion, marking a significant year-over-year increase of 29% in 2012, compared with $1.8 billion in 2011.

Top 10 Ad-Selling Companies Command Market

  • Online advertising remains concentrated with the 10 leading ad-selling companies, which accounted for 72% of total revenues in 4Q12, up slightly from the 71% reported in 4Q11.
  • Companies ranked 11th to 25th accounted for 10% of revenues in 4Q12, down slightly from the 11% reported in 4Q11. Companies ranked 26th to 50th accounted for 7% in 4Q12, down from the 8% reported in 4Q11.

Ad Revenue Percentages by Industry Category

  • Retail advertisers, despite an overall decline, still constitute the largest category of Internet ad spending, accounting for 20% of revenues in 2012, down from the 22% reported in 2011.
  • Financial services advertisers were the next highest spenders, accounting for 13% of revenues in 2012, consistent with the 13% reported in 2011.

About the research: The report was compiled directly from information supplied by companies selling advertisements on the Internet. The study included revenue data from websites, commercial online services, free email providers, and other companies selling online advertising. 

Continue reading "Internet Ad Revenue Breaks Record, Mobile Achieves 111% YOY Growth" ... Read the full article

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image of Ayaz Nanji

Ayaz Nanji is a digital strategist and a co-founder of ICW Media, a marketing agency specializing in content and social media services for tech firms. He is also a research writer for MarketingProfs. He has worked for Google/YouTube, the Travel Channel, AOL, and the New York Times.

LinkedIn: Ayaz Nanji

Twitter: @ayaznanji