Search Is Still King Of Online Ads -- These Charts Prove It

online advertising report

Google has been spending a lot of money advertising that display is the next big thing in advertising. And everyone is excited about making money off of web video.

But looking at the latest report on the state of online advert sing from the Internet Advertising Bureau, it’s clear that if there is a revolution in online ad spend going on, it’s still in a very early stage. The money is still where it has always been: search advertising.

The distribution of ad revenue hasn’t changed much over the past year. But the overall size of the market is growing rapidly. Q2 online ad revenue was up 13.9 per cent over 2009 to $6.19 billion.

Q2 ad revenues are up 13.9 per cent over 2009

Source: IAB

For the first half of 2010, revenue was up 11.3%

Source: IAB

2009 was a down year, but overall, online advertising just keeps growing and growing

Source: IAB

The second half of the year is generally slightly bigger than the first

Source: IAB

2005-2007 saw explosive growth. 2009 was brutal. Are we back on track?

Source: IAB

Search hasn't lost any ground, and display is just barely on the rise

Source: IAB

Lead gen is drying up as a revenue source

Source: IAB

Just 10 ad-sellers control 70% of revenue

Source: IAB

Classifieds, lead gen, and sponsorship are all on the decline

Source: IAB

Retailers account for a fifth of ad spend

Source: IAB

Advertisers increasingly pay for clicks (or other actions) rather than impressions.

Source: IAB

Hybrid models aren't taking off

Source: IAB

CPM hasn't been king since 2005

Source: IAB

That's where online advertising is now...

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