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Internet Advertising Sees Increase Due in Part to Mobile Growth

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Internet advertising revenues in the United States totaled $31.7 billion in 2011, a 22 percent increase from 2010, largely due to the growth of mobile advertising. This is according to the April 2012 Internet Advertising Revenue Report released by Pricewaterhouse Coopers on behalf of the Internet Advertising Bureau.

Internet advertising revenues experienced a steady increase quarter over quarter throughout 2011, peaking in the fourth quarter with $8.97 billion in reported revenues. This number represents a 15 percent increase from the third quarter’s $7.82 billion and an impressive 20 percent increase from the fourth quarter of 2010’s $7.45 billion total. While the majority of ad revenue came from search (46.5 percent) and display-related advertising (34.8 percent), mobile contributed to 5 percent of all ad revenue in 2011.

A significant portion of the overall increase in revenue can be attributed to the emergence of mobile advertising; mobile ads in the U.S. totaled $1.60 billion throughout 2011. This massive jump represents a 149 percent increase from 2010’s total of $640 million. According to David Silverman, partner at PwC, “The year 2011 saw mobile advertising become a meaningful category. By combining some of the best features of the internet, along with portability and location-based technology, mobile advertising is enabling marketers to deliver timely, targeted, relevant, and local advertisements in a manner that was not previously possible. It is for these reasons that we expect strong growth to continue with mobile advertising.”

Advertising is shifting toward mobile at a rapid rate. According to the PwC report, it grew 149 percent from 2010 to 2011, and this trend is expected to continue as mobile devices become increasingly popular.

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