Internet ad revenue declines 5.3% in first half

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New York—Internet advertising revenue fell 5.3% in the first half from the same six-month period in 2008, according to a report released Monday by the Interactive Advertising Bureau and PricewaterhouseCoopers.

The “IAB Internet Advertising Revenue Report” showed Internet ad revenue totaled $10.9 billion in this year's first half, down from $11.5 billion in the year-earlier period.

Compared with other sectors of advertising, however, digital's stock has remained relatively constant. Search revenue accounted for 47% of second-quarter revenue, up from 44% a year earlier. Display-related advertising totaled $3.8 billion, a decrease of just 1.1%. The sectors hit hardest included classified, down 32% in the second quarter, and lead generation, down 10%. Digital video continues to be the medium to watch, experiencing a 38% increase from 2008's second quarter.

“We are in one of the most difficult economic slumps in decades. Interactive is one of the advertising sectors that has been least affected,” said IAB President-CEO Randall Rothenberg. “In recent years the digital revolution has driven a transformation of how consumers experience advertising and media. As the economy improves, we're confident that brands will devote an even greater share of their budgets to reaching consumers as they make interactive media a larger part of their lives.”

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