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Paid Search Revenue Hit $14.8 Billion in 2011, Up 27% [Report]

Danny Goodwin
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Paid search remained the dominant ad revenue driver in 2011, accounting for $14.8 billion of the record $31 billion of all online advertising last year, according to the latest IAB Internet Advertising Revenue Report, prepared by PwC U.S.

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Search advertising accounted for 46.5 percent of all 2011 digital advertising – in 2010, search accounted for 45 percent of online ad spending. The $14.8 billion in revenue surpassed eMarketer’s forecast of $14.38 billion – and was a 27 percent increase from $11.7 billion in 2010 revenue.

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The record $31 billion in 2011 digital ad revenues is a 22 percent increase over the $26 billion generated in 2010.

Mobile advertising was the fastest growing category, hitting $1.6 billion in 2011, more than twice the amount spent in the previous year ($600 million). Mobile accounted for 5 percent of all online advertising.

Meanwhile, display advertising spend hit $11 billion in 2011, a 15 percent increase over 2010 figures. However, it's share of the overall marketing spend dropped to 34.8 percent, down from 37 percent in 2010.

The report also shows that fourth quarter revenue for 2011 totaled $9 billion, a 20 percent year-over-year increase compared to $7.4 billion in 2010.


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