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6

Reply! Flourishes As US Internet Ad Revenue Takes A 5.3% Dip

Posted by Brian Bowman, CMO, Reply.com
Filed Under Online Marketing, Research, SEM - Paid Search, Search

The IAB and PricewaterhouseCoopers released US Internet advertising stats for the first half of 2009. US Internet advertising revenues totaled $10.9 billion, a 5.3% decline from the same period in 2008. 2008 was the peek for Internet advertising in the US, with $23.4 billion in total revenues, up from $6 billion in 2002.

Search accounts for 47% of the total ($5.1 billion), up from 44% 1H ‘08. Display ads, classified listings, lead generation and email accounts for 34%, 10%, 7% and 1%, respectively. Retailers comprised the most substantial spending category, with a 20% market share.

Top 10 ad-selling companies accounted for 71% of total revenues in the second quarter of 2009.

11th: 25th – 11% of revenues for the second quarter of 2009.
26th: 50th – 7 percent in the second quarter of 2009.

Industry revenue concentration remains high.
Performance based pricing has maintained a strong sequential growth rate and is growing at the expense of CPM/Impression based pricing.
Traffic is highly concentrated in the top 10 – 50 sites; everyone else is a traffic reseller.

Lead Generation revenues accounted for 7% of the 2009 second-quarter revenues or $361 million, down 10 percentfrom the $402 million (7 percent) reported in the second-quarter of 2008.

While lead generation was down for the industry, Reply! has posted over 50 percent revenue growth for the six-month period ending June 30, 2009 compared to a year ago in the Automotive and Real Estate categories, and has experienced increasing profitability over the last six consecutive quarters. Reply!’s growth can be partially attributed to its recently-launched advertiser-side exchange that efficiently allows for monetization of poorly-targeted traffic acquired from any online channel. Advertisers can quickly recover wasted online spend by making it available to buyers through Reply!’s platform.

For more information about Reply!’s success during this challenging time for the industry, read our recent press releases:Reply! Grows at Unprecedented Rate, Rips Beta Off Its Marketplace, Reply.com Brings on Board Top Real Estate Firms, Reply.com Launches Home Improvement.

Reply.com’s Marketplace and Exchange offer highly-efficient, locally-targeted consumer acquisition opportunities for large, sophisticated advertisers—as well as individual service providers—on a per-lead or per-Enhanced Click™ basis.

The full report is available here (as a pdf) and below.

IAB-Ad-Revenue-Six-Month-2009

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