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Slowdown Shows In H108: Online Ad Spend Gained 15.2 Percent; Q2 Up 12.8 Percent: IAB

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After the poring over the series of revisions that have gone into the latest ad forecasts this morning, the Interactive Advertising Bureau’s review of ad spending during the first six months of 2008 is beginning to look like the good old days, at least in comparison: for H108, ad revenues reached $11.5 billion for a 15.2 percent increase over the nearly $10 billion during the same period last year, which represented a gain of 26.6 percent over H106. The numbers suggest that online advertising, while still seeing consistent growth, is seeing its gains continuing to slow. That fact was driven home by online advertising’s Q2 numbers. Although Q2 grew 12.8 percent year-over-year, it showed a slight sequential decline of 0.3 percent from Q1.

Search and display: As for the dynamic between search and display, the former’s revenues totaled almost $5.1 billion for the first six months of 2008 — a gain of 24 percent over last year’s $4.1 billion. While that’s still impressive growth, remember last year, when search ads were up 41 percent. Display, which has been going through some struggles lately, ended H108 close to $3.8 billion, or 19 percent over the $3.2 billion in the same period in 2007.

Pricing: Performance-based deals remained ahead of CPM-deals as the two leading pricing models. While the performance model grew 50 percent in the first half of 2007 saw its growth rate hit 52 percent in H108, CPM deals’ growth declined, with 44 percent gains this year compared to a 45 percent increase the year before period. Release