Internet advertising revenues surpass radio in 2008: IAB

The IAB reported March 31 that Internet advertising revenue surpassed radio ad revenue for the first time ever during 2008. The report goes on to quote IAB President/CEO Randall Rothenberg as saying in Radio Ink“We are seeing an ongoing secular shift from traditional to online media as marketers recognize that ad dollars invested in interactive media are effective at influencing consumers and delivering measurable results,”.

Search remained the main driver of revenue growth, showing a 19.8% increase over 2007. Display banner advertising, the second largest format, accounted for 21%, followed by classifieds (13%), lead generation (7%) and rich media (7%) of 2008 Q4 revenues.

The only other category to see ad revenue growth for the year was cable TV. Total non-internet ad revenue, including radio, fell 2.4% for the year.

I only have one question for you -  given the continuing fragmentation of media, consumers switching to watching shows on demand via the likes of Hulu, how long before Internet advertising outstrips TV?

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