Overall internet advertising revenues totalled $12.5 billion in 2005, a new annual record exceeding 2004’s figure by 40%.
According to new figures released by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC), internet ad revenues in the last quarter of 2005 reached $3.6 billion, representing a 34% increase over the same period in 2004.
Commenting on the findings, Greg Stuart, chief executive officer of the IAB, said: “Interactive advertising continues to experience tremendous growth as marketers experience its overall effectiveness in building brands and delivering online and offline sales.
“We are confidence that this growth trend will continue as more marketers find interactive to be an imperative and additional platforms including broadband video, gaming, IPTV and others continue to emerge as real opportunities.”
Peter Petrusky, director of advisory at PwC, added: “Continued strong growth in online advertising documents that an increasing number of advertisers and marketers see the internet as an essential brand-building component in their media planning.”
Online advertising looks set to continue its solid performance, with a new study from Deutsche Bank in conjunction with MediaPost finding that US online advertising expenditure in the first quarter of 2006 rose by 9.3% compared to the last quarter of 2005 (see US Online Adspend Up By 9.3% In Q1 2006).
Online adspend is increasing its presence in the UK as well, with total expenditure up by 65.6% in 2005, reaching £1.4 billion and enjoying a market share of 7.8% (see UK Online Adspend Up By 65.6% In 2005).
Online is expected to continued its strong growth, with OPera forecasting global display advertising to enjoy a surge in popularity over the next five years, with expenditure forecast to hit £11.8 billion in 2010, up from £9.5 billion this year (see UK Adspend To Hit £15 Billion By 2010).
Related Links
