At more than $12.5 billion, 2005 online ad revenues set a record

03/02/2006

At more than $12.5 billion, 2005 online ad revenues set a record The online medium is more entrenched among more marketers than ever, according to data from the Interactive Advertising Bureau and PricewaterhouseCoopers. Internet advertising revenue estimated at more than $12.5 billion is a 30% increase over 2004 s record revenue of $9.6 billion.

Fourth quarter revenues of $3.6 billion, the highest quarter reported, represent a 35% increase over the same period in 2004 and a 17% increase over Q3 2005.

Consumers are embracing the Internet as integral to everyday life and marketers are continuing to acknowledge it as a critical medium for engaging customers, according to Greg Stuart, IAB CEO. The continued increase in spending supports the cross media research that proves Interactive is often the most cost-effective way to drive ROI, he says.

More marketers are realizing gains from online advertising, as the media landscape changes with factors such as the emergence of broadband, says David Silverman, partner, assurance services, PricewaterhouseCoopers. With the increase in broadband penetration further enhancing how messages get delivered, we should continue to see a favorable environment for increased Internet ad spend, he says.

The 2005 Q4 and full year online ad revenue figures were estimated by surveying and aggregating data from the top 15 online ad sellers, then extrapolating those numbers to calculate the total estimated industry revenue figures.

Source: internetretailer.com
Marh 2,2006