Internet Up, DM Down

The latest figures released by the Interactive Advertising Bureau show that expenditure on Internet adverts increased rapidly throughout 2011 to reach a record $31 billion for the year. This is an increase of 22% over 2010. Of this, display-related advertising revenue totalled $11.1 billion (up 15% from the previous year) and digital video totalled $1,8 billion (an increase of 29%), but the largest share of Internet ad revenue went to search campaigns – $14.8 billion, up almost 27%.

Spending on mobile advertising, although constituting just $1.6 billion of the total spend, actually increased by a startling 149%. A separate study just released by Strategy Analytics predicts mobile ad revenue will reach an estimated $11.6 billion this year.

At the same time, budgets for direct marketing were revised down in the first quarter of 2012, with the change being principally attributed to shifts in spend towards internet advertising. It should be noted, however, that according to this latest IPA Bellweather report, actual spend on direct marketing rose, in 2011, for the first time in four years (based on provisional data).

Analysis of marketing budgets by medium for Q1

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