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Search Marketing Drives $10 Billion Internet Ad Revenues in Q1, Q2 2007

Search Marketing Drives $10 Billion Internet Ad Revenues in Q1, Q2 2007

Search marketing dominated the lastest IAB Internet Advertising Revenue Report, which covered the second quarter and the first six months of 2007.

Internet advertising revenues for the first six months of 2007 were nearly $10 billion, setting yet another new record and representing a nearly 27 percent increase over the first half of 2006. 41% of that ad revenue, or $4.1 Billion, was attributed to paid search marketing (leaving out SEO and link buying).

Advertising Formats – Search and Display continue to be leading formats.

 FH 2006FH 2007
Search40% ($3,164)41% ($4,097)
Classifieds20% ($1,582)17% ($1,699)
Referrals/Lead Generation7%($592)8% ($799)
E-mail2% ($158)2% ($200)
Display Related:31% ($2,413)32%($3,198)
– Rich Media (Includes Video)6% ($475)8%($799)
– Ad Banners / Display Ads21% ($1,622)21%($2,099)
– Sponsorships4% ($316)3% ($300)
– Slotting Fees<1% (<1$)<1% (<$1)

Internet advertising revenue totaled nearly $5.1 billion for the second quarter of 2007, exceeding the $5 billion mark for the first time in a quarter, a 25.4 percent increase over the same period in 2006.

I wonder what the total amount of Search Marketing revenue would be if SEO budgets, link buying revenue and directory listings were part of the equation, or would some of these fall into slotting, sponsorships and/or display ads and how search rankings influence the placement of the advertising classified under display?

My point is, Search Marketing may attribute to much, much more than the 41%.


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Loren Baker

Loren Baker is the Founder of SEJ, an Advisor at Alpha Brand Media and runs Foundation Digital, a digital marketing ... [Read full bio]

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