Internet Advertising Revenue Up 37%, Hits Record $8 Billion

According to a study released by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PWC), internet advertising revenue (in the U.S.) rose 37 percent in the first six months of the year, hitting a record of nearly $8 billion. Search-related advertising rose 40 percent in the first half of the year, while classified advertising rose 20 percent.

Industry-wide Revenue Up,
Yahoo Warns Revenue May Decline

On Sept. 20th, Yahoo warned analysts that revenue may drop because ad spending in new media could be slowing. In Yahoo's warning, the company pointed to weakness in advertising from automobile and financial firms.

The $64 million-dollar question is…does Yahoo's "revenue warning" suggest a problem with Yahoo itself, or does it foretell an industry-wide slowdown in online ad spending?

Based on the IAB and PWC study, it appears the problem is strictly Yahoo's. Google has a larger reach (when it comes to search numbers) and Google's Adwords' interface is faster and easier to use than the YSM interface. Yahoo's delayed "ad approval" process can be particularly frustrating.