US internet ad revenues hit by 31% classified drop

LONDON - US internet advertising revenues have declined by 5.3% year on year to $10.9bn (£6.8bn) in the first six months of 2009, according to the Interactive Advertising Bureau.

The IAB did not issue a figure for total advertising revenues, but separate (including a 1% drop for the internet) across the whole industry to $56.9bn.

Despite the fall revelaed by the IAB survey, US internet spend is likely to have increased its share of the total ad market, as it has in the UK. The UK IAB last week issued its biannual PricewaterhouseCoopers report showing .

The US decline was caused for the most part by a terrible performance in the classified category, where revenue fell 31% to $1.12bn.

The IAB report did not offer an explanation of the fall, but factors may include the popularity of free classified listings websites, such as Craigslist, and the decline in employment.

Digital display revenue dropped 1% to $3.76bn. Within display, digital video revenue rose 38% to $477m, offset by falls in rich media and sponsorship. Revenue from banner ads remained relatively unchanged.

Search revenue rose 2% to $5.1bn, meaning the category now accounts for 47% of US internet ad spend to display's 34% and classified's 10%.

Randall Rothenberg, president and chief executive of the US IAB, said: "We are in one of the most difficult economic slumps in decades. Interactive is one of the advertising sectors that has been least affected.

"As the economy improves, we're confident that brands will devote an even greater share of their budgets to reaching consumers as they make interactive media a larger part of their lives."

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