Andrew Chen’s Futuristic Play has a post for IAB 2007 Internet Advertising Revenue Report. The key trends underlying the results are:

• 1. Total revenues up 13% from the previous quarter and 26% from last year.
  2. Consumer-related advertisers are the biggest contributor for the result, accounts for 55% of 2007 revenue.
  3. Search advertising continues to lead, followed by display advertising, classifieds and lead generation.

I have the re-post of the report here:

IAB report is pretty much focused on the US market. But it also sheds light the trend and possibly how the global ad business will follow suit because most of the key revenue contributors today are driven by the global players in the market. So this is how I have my local insight developed based on the report.

In China, search advertising has a substantial consecutive growth according to most of the studies, but display advertising is still taking most of the marketing spends. Lead generation has not been fully developed partly owing to the lack of conversion tracking practiced by the advertisers.

But having said that, the ad spending in B2B sector could just be a reverse case. Owing to the nature of B2B, every advertising dollar is a cost conscious spending with the projected good return from the ad budget. In general, marketing cycle is short, ad budget is small, the advertisers are impatient of long-period advertising campaigns and not loyal toward media. All these contribute a low advertiser retention rate and an underdeveloped online ad market. I also believe the growth of search advertising in China is contributed by the long-tail first-time advertisers.

I’d like to know if there is any comparison for the advertiser profiles between display advertising and search advertising, which I believe the finding will tell us an interesting side about China’s Internet ad market. Do let me know if you’ve come across this report.

Overall in my opinion, if the long tail is leading the growth and they are the impatient group, then the China local ad market has yet been settled in a happy scene.

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