VIDEO: Ken Mandel on IAB Singapore's first online advertising revenue report

According to the IAB’s report, which tracks figures from 2008 and the first half of 2009 for now, online advertising revenue in 2008 was well over US$36 million. In H1 2009, it was over $21.5 million.

The IAB online advertising revenue report, conducted in partnership with PricewaterhouseCoopers, confirms the growing confidence that advertisers hold in the internet’s ability to deliver on their marketing objectives.

In 2008, the share of total advertising spend claimed by online was approximately 3.5 per cent; data for H1 2009 indicates strong growth in 2009 and currently, the IAB estimates share to be at six per cent. Growth is estimated to be 19.5 per cent CAGR.

Other findings show that in terms of advertising formats, general display advertising fell as a share of advertising during the study period, conversely search share grew while classified and directory advertising share remained constant.

For industry categories of advertisers, the top three categories were travel and leisure, technology, and financial services throughout the period.

With regards to pricing models, performance-based pricing showed strong sequential growth through the study period. CPM-based pricing showed a corresponding decline in share whereas tenancy-based pricing remained constant.

Click here to download the full report.