The Online Ad Market Comes Roaring Back With A Record $26 Billion In 2010

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Photo: andrew mace– via flickr

The Internet Advertising Bureau has just released its report on how much money was spent on online ads in 2010 and how.Here’s a few takeaways:

  • Online ads grew 15% to $26 billion for 2010, and recovered to the growth rates from before the financial crisis
  • Search is still the biggest category but display is growing faster
  • The Top 10 companies (read: Google, Yahoo and Microsoft) account for 72% of the revenue, making this a hugely concentrated market
  • Retail is still the biggest category, followed by telecom and financial services.

But there’s much more, so let’s look at some charts.

Let's go!

Q4 was a record holiday quarter, with $7.45 billion spent

The market overall is still growing fast, 15%

Growth is back to what it was before the recession

15 of the last 20 quarters have seen growth

The second half of the year is always bigger than the first, because of the holiday period

The market is highly concentrated. The top 10 companies control 72% of the market, the top 50 91%.

Search is still the biggest category but display is grabbing a larger share of the pie

Mobile ads are estimated at $550-$650 million

(No chart!)

Search has been the biggest since 2006, display is growing, classifieds are holding

The biggest spenders by far are retail, followed by telcos and banks

Performance-based ads, which include search but not only, are growing, and CPM (mostly display) is shrinking.

Online marketers love measurable ROI. Impressions are nice, but not so great. And they don't want to hear about hybrid stuff.

For the first time, internet ads are bigger than newspapers! But they're still much smaller than all TV put together.

Here's the growth of the internet, TV and cable from the years they've been launched, and with inflation-adjusted amounts. Internet is growing MUCH faster than they were.

After the past of advertising, the future of commerce

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