The IAB said U.S. Web ad revenue in the second quarter rocketed 121% from a year earlier -- to $934.4 million, with first-half spending jumping 110% to $1.6 billion. PricewaterhouseCoopers, which compiles the data, raised its '99 Web advertising run rate to about $4 billion, from $3 billion.
That would put Internet ads at about 2% of the U.S. ad market. Last year, IAB reported, Web ad revenue totaled $1.98 billion.
"The run rate is really picking up," said Tom Hyland, chairman of PricewaterhouseCoopers' New Media Group. He said most Web growth is coming from established marketers, with dot-coms appearing to be just "a blip" on the screen.
DOT-COM SPENDING IRONY
Mr. Hyland noted the irony that dot-coms are spending billions on offline ads. But since many ad insiders expect dot-com spending to pull back in 2000, the fact that Web ad spending is growing without much help from dot-coms bodes well for Web advertising next year.
Several thousand significant sites rely on Web ads, but IAB data show the top 10 publishers garnered 75% of second-quarter revenue.
"The big are getting bigger," said IAB Chairman Rich LeFurgy.
Banner ads accounted for 59% of second-quarter revenue, about even with last year.
Revenue from sponsorships fell from 37% to 28% of the total, a surprise given the attention sponsorships have gotten. Mr. LeFurgy said rich-media ads appear to be picking up some of the slack; an "other" category, largely rich media,