Online Ad Revenue Continues Steady Double-Digit Climb - InformationWeek

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Online Ad Revenue Continues Steady Double-Digit Climb

U.S. Internet advertising revenues for 2005 soared 30 percent to top an estimated $12.5 billion.

U.S. Internet advertising revenues for 2005 soared 30 percent to top an estimated $12.5 billion, an industry trade group said Wednesday.

The increase from $9.6 billion in 2004 reflects the return on investment marketers find from the interactive components of Web advertising that engage customers, said Greg Stuart, chief executive of the Interactive Advertising Bureau, which released the figures jointly with consulting firm PricewaterhouseCoopers.

In addition, the wider use of broadband is helping to drive online ad revenues.

"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," David Silverman, a PwC partner, said in a statement.

In the fourth quarter of 2005, ad revenues ht a record $3.6 billion, making it the second consecutive quarter to surpass the $3 billion mark. The total for the quarter was 35 percent more than the same period in 2004, and a 17 percent increase over the third quarter of 2005.

The revenue figures were estimated by surveying and aggregating data from the top 15 online ad sellers. The final results are scheduled to be reported in April.

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