Internet ad revenues continue to soar

Take a look at the adjoining graph and you can see the bite which resulted from the infamous “tech-wreck” and the bullishness of the advertising market ever since. The Interactive Advertising Bureau (IAB) yesterday announced that Internet advertising revenues reached a new record of US$3.9 billion for the first quarter of 2006, a 38 percent increase over Q1 2005 and a 6 percent increase over the traditionally strong fourth quarter figure for 2005. The continued growth of the internet is reshaping the media landscape – in the last three years internet ad revenues have surpassed cinema, outdoor, radio and magazine advertising revenues.

"The steady growth of online advertising is a clear indication that marketers continue to believe in the opportunities and effectiveness that this medium delivers in reaching and engaging their consumers," said Greg Stuart, CEO, Interactive Advertising Bureau. "The Interactive Advertising industry remains committed to the creation of a world class medium with best-of-breed standards, measurement guidelines, research and ad products for marketers and agencies."

"The Internet continues to shape the media landscape as more advertising dollars are going online," said Peter Petrusky, Director, Advisory Services, PricewaterhouseCoopers. "It is abundantly clear that marketers are seeing a compelling opportunity to leverage the Internet as a powerful medium that drives both branding and sales results."

"Consumer habits are continuing to change and mature," adds David Silverman, partner, Assurance, PricewaterhouseCoopers. "Companies are effectively learning to devote more of their advertising budget to this fast-growing advertising platform in order to reach the right audience at the right time."

Conducted by the New Media Group of PricewaterhouseCoopers, the "Advertising Revenue Report" was started by the IAB in 1996, and represents data from all companies that report meaningful online advertising revenues. The results are considered the most accurate measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertising on the Internet. The survey includes data concerning online advertising revenues from Web sites, commercial online services, free e-mail providers, and all other companies selling online advertising. First and third quarter revenue reports are estimates, with the actual figures being released along with second and fourth quarter data respectively. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information.

The IAB sponsors the Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PricewaterhouseCoopers. The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first and third quarters.