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Sunday, April 23, 2006

U.S Online Advertising up 30%

Posted by @ 7:44 pm
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
Online Ad Format 2004 Revenues 2005 Revenues
Search 39% 41%
Display Related 38% 34%
Classifieds 18% 17%
Lead Generation/Referrals 3% 6%
Email 2% 2%

Source: PricewaterhouseCoopers, April 2006

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.”

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Rene LeMerle Rene is the marketing manager of - a global search engine marketing company. He also leads the marketing for - a web 2.0 style community for online and digital marketers. Rene has been in the industry since 1997 with much of that time spent helping businesses embrace the best of the internet and digital world.

View Rene LeMerle's profile

Discussion (2 - comments)

Very intersting considering the growing importance of online advertising for branding purposes!

By Anonymous - April 24, 2006

It is a good revenue generator for companies with the “pulling power” to attract the constant revenue streams eg google, ninemsn and large portal type websites. I just wonder as the amount of companies who advertise increases, for search related ad formats, how effective these ads prove to be? It is comforting to know, being involved in the Internet industry, that more people are turning there advertising budgets to the internet.

By andrew - June 26, 2006

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