* Search revenues accounted for 44% of 2008 Q2 revenues, upfrom the 40% reported for the same period in 2007. Search revenues totaled $2.5 billion in the second quarterof 2008, up 24% from the second quarter of 2007, when Search revenues totaled just over $2 billion.

* Display-related advertising accounted for $1.9 billion or 33% of total revenues during the second quarter of 2008, up nearly 13% from the $1.7 billion (33% of total) reported in the second quarter of 2007. Display-related advertising includes Display Banner Ads (21% of 2008 Q2 revenuesor $1.2 billion), Rich Media (7% or $402 million), Digital Video (3% or $172 million), and Sponsorship (2% or $115 million).

* Classifieds revenues totaled $804 million or 14% of 2008 second-quarter revenues, down 7% from the $866 million (17% of total) reported in the second quarter of 2007.

* Lead Generation revenues accounted for 7% of the 2008 second-quarter revenues or $402 million, down 1% from the $408 million (8%) reported in the second quarterof 2007.

Retail advertisers continue to represent the largest category ofInternet ad spending, accounting for 21% of revenues for the first six months of 2008 or $2.4 billion, down from the 24% ($2.4 billion) reported in 2007.

Financial Services advertisers represented the second-largest category of spending at 13% of 2008 first six-month revenues or $1.5 billion, down from the 15% ($1.5 billion) reported for the same period in 2007.

Computing advertisers represented the third-largest category of spending at 12% of 2008 first six-month revenues or $1.3 billion, up slightly from the 11% reported ($1.1 billion) for the first six months of 2007.

Automotive advertisers accounted for the fourth-largest category of spending at 12% of 2008 first six-month revenues or $1.4 billion, up slightly from the 11% ($1.1 billion) reported in 2007.

Telecom companies accounted for 9% of 2008 first six-month revenues or $985 million, up slightly from the 8% ($799 million) reported for the same period in 2007, while Leisure Travel (airfare, hotels & resorts) accounted for 6% of revenues ($687 million) compared to the 7% or $667 million reported in 2007.

Media accounted for 5% of revenues for the first six months of 2008 or $623 million, down slightly from the 6% ($600 million) reported in 2007.

Consumer Packaged Goods and Food Products represented 7% of first six-months revenues ($754 million) up from the 4% or $421 million reported in 2007. Entertainment accounted for at 4% of 2008 first six-months revenues or $466 million), down slightly from the 5% ($496 million) reported for the first six months of 2007.

Definitions of Advertising Formats

* Display Advertising (Banner Ads)—advertiser pays an Internet company for space to display a static or hyper-linked banner or logo on one or more of the Internet company’s pages.

* Sponsorship—represents custom content and/or experiences created for an advertiser which may or may not include ad elements such as display advertising, brand logos, advertorial or pre-roll video. Sponsorships fall into several categories:

- Spotlights are custom built pages incorporating an advertiser’s brand and housing a collection of content usually around a theme

- Advergaming can range from an advertiser buying all the ad unitsaround a game or a “sponsored by”link to creating a custom branded game experience

- Content & Section Sponsorship is when an advertiser exclusively sponsors a particular section of the site or email (usually existing content) reskinned with the advertiser’s branding

- Sweepstakes & Contests can range from branded sweepstakes on thesite to a full-fledge branded contest with submissions and judging

* E-mail—banner ads, links or advertiser sponsorships that appear in e-mail newsletters, e-mail marketing campaigns and other commercial e-mail communications. Includes all types of electronic mail (e.g., basic text or HTML-enabled).

* Search—fees advertisers pay Internet companies to list and/or link their company site domain name to a specific search word or phrase (includes paid search revenues). Search categories include:

- Paid Listings—text links appear at the top or side of search results for specific keywords. The more a marketer pays, the higher the position it gets. Marketers only pay when a user clicks on the text link.

- Contextual Search—text links appear in an article based on the context of the content, instead of a user-submitted keyword. Payment only occurs when the link is clicked.

- Paid Inclusion—guarantees that a marketer’s URL is indexed by a search engine. The listing is determined by the engine's search algorithms.

- Site Optimization—modifies a site to make it easier for search engines to automatically index the site and hopefully result in better placement in results.

* Lead Generation—fees advertisers pay to Internet advertising companies that refer qualified purchase inquiries (e.g., auto dealers which pay a fee in exchange for receiving a qualified purchase inquiry online) or provide consumer information (demographic, contact, behavioral) where the consumer opts into being contacted by a marketer (email, postal, telephone, fax). These processes are priced on a performance basis (e.g., cost-per-action, -lead or -inquiry), and can include user applications (e.g., for a credit card), surveys, contests (e.g.,sweepstakes) or registrations.

* Classifieds and Auctions—fees advertisers pay Internet companies to list specific products or services (e.g., online job boards and employment listings, real estate listings, automotivelistings, auction-based listings, yellow pages).

* Rich Media—advertisements that incorporate animation, sound, and/or interactivity in any format. It can be used either singularly or in combination with the following technologies: sound, Flash, and with programming languages such as Java, JavaScript, and DHTML. It is deployed via standard Web and wireless applications including e-mail, static (e.g. .html) and dynamic (e.g. .asp) Web pages, and may appear in ad formats suchas banners, buttons, and interstitials. Interstitials are included in the rich media category and represent full-or partial-page text and image server-push advertisements which appear in the transition between two pages of content. Forms of interstitials can include splash screens, page takeovers and pop-up windows.

* Digital Video Commercials—TV-like advertisements that may appear as in-page video commercials or before, during, and/or after a variety of content in a player environment including but not limited to, streaming video, animation, gaming, and music video content. This definition includes digital video commercials that appear in live, archived, and downloadable streaming content.