Web Ad Revenue Grew In 4Q But Slower Than In Past

RACHEL METZ

NEW YORK (AP) — U.S. Internet advertising revenue climbed in the fourth quarter in spite of the poor economy, but the growth rate was sluggish compared to previous years, according to an analysis released Monday.

The report from the Interactive Advertising Bureau and PricewaterhouseCoopers LLP said that revenue from online ads — which companies like Google and Yahoo heavily rely on — totaled $6.1 billion in the last three months of 2008.

That marked an increase of $154 million, or almost 3 percent, from the same period in 2007. Back then, Internet advertising was up 24 percent over the previous year.

In the most recent quarter, revenue from search ads, which make up the largest segment of the online advertising market, rose 13 percent to $2.8 billion. Revenue from graphical "display ads," the second-largest segment, fell 4 percent to $2 billion.

Sherrill Mane, senior vice president of industry services for the Interactive Advertising Bureau, a trade group, said any growth at all was a positive sign for an industry that is starting to mature while coping with the recession. David Silverman, a partner at PricewaterhouseCoopers, called the year-over-year growth "remarkable."