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Internet advertising in US soars 22% to $31 bn

MUMBAI: Revenue by way of Internet advertising in the US soared 22 per cent to $31 billion in 2011. The bulk of last year‘s spend went to search and display advertising, according to a report from the Interactive Advertising Bureau and PwC.


The numbers show the growing importance of digital among advertisers who are choosing to place more dollars on websites, smart phones, and tablet devices to reach consumers.In contrast, newspapers have seen a drastic and steady fall. It is reported that advertising revenue in newspapers was $23.9 billion in 2011, down more than 50 per cent in a five-year period.


The report also found mobile advertising increasing 149 per cent to $1.6 billion in 2011. While mobile advertising experienced the fastest growth of all the categories, it still represents a tiny sliver of advertisers‘ total spend. Search advertising remains the largest part of overall spending coming in at $14.7 billion, up almost 27 percent from the prior year.


Display advertising, which includes video, banners and big splashy formats, rose 35 per cent to $11.1 billion.


Another category showing significant growth was advertising associated with digital video. Compared to $1.4 billion in 2010, revenue reached $1.8 billion last year. This represented a 29 per cent year-over-year gain.

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