For the third consecutive year, Internet advertising revenues in the U.S have reached record highs with a total of $12.5 billion spent in 2005, jumping 30 percent from 2004 ($9.6 billion), according to recent figures released by the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).
$3.6 billion was spent in the fourth quarter alone, exceeding year-on-year figures by nearly 34 percent ($9.6 billion). Internet advertising as a whole accounted for approximately 5 percent of total U.S advertising, up from nearly 3.7 percent in 2004.
Search continues to dominate Internet Ad revenues, accounting for 41 percent ($5.1 billion) of total adspend in 2005, followed closely by display related advertising which attracted 34 percent of total revenues.
Internet Ad Revenues by Advertising Format
Source: PricewaterhouseCoopers, April 2006
|Online Ad Format
Pete Petrusky, Director, PricewaterhouseCoopers is confident that this trend will continue, “The Internet delivers the right audience at the right time – a winning combination for all types of marketers. We expect to see continued growth in Internet advertising spend.”