IAB: First-Quarter Internet Ad Spending Hits $351 Million

The Internet Advertising Bureau (IAB) said that its “Advertising Revenue Reporting Program” shows that total first-quarter spending on Internet ads reached $351.3 million.

That’s an increase of 271% over the first quarter of 1997 and the eighth consecutive quarter of positive revenue growth.

The report was presented by Coopers & Lybrand at the IAB’s annual membership meeting in San Francisco.

“Internet advertising continues its billion dollar run-rate for the second quarter in a row, and continues to trend towards a traditional media model, with computer and consumer-related advertising leading the way,” the IAB said.

“We saw the first significant signs that Internet advertising was trending towards the traditional media model with last year’s fourth quarter results,” said Rich LeFurgy, IAB Chairman. “The results for the first quarter of this year underscore the fact that the Internet is now considered an integral component of the overall media mix, and subject to the same variables as all other forms of advertising.”

Category spending was as follows: Computing (27%), consumer-related (25%), telecom (14%), financial services (13%) and new media (10%).

The survey also found that banner advertisements continue to dominate spending in the category (55%) with sponsorships (40%), interstitials (4%) and others (1%) rounding out the category. The survey includes data from more than 200 online publishers.