US Internet advertising revenues for 2005 are estimated to exceed $12.5 billion, up by 30% over the previous revenue record of $9.6 billion in 2004, according to the latest figures from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).
Revenues from the fourth quarter of 2005 totalled a record $3.6 billion, up 35% year on year, marking the second consecutive quarter to surpass the $3 billion mark and the highest quarter reported.
Commenting on the impressive results, Greg Stuart, chief executive officer of the IAB, said: “As consumers continue to embrace the internet as an integral part of their everyday lives, marketers continue to acknowledge that interactive is a critical medium to engage their customers and create deeper brand experiences.”
Stuart continued: “Furthermore, this continued increase in spending supports the cross media research that proves interactive is often the most cost-effective way to drive increased ROI. We fully expect interactive to continue to play an ever increasing role of importance for marketers.”
David Silverman, partner, in assurance services, PricewaterhouseCoopers, added: “The media landscape has clearly changed with more and more marketers realising that there is much to be gained from online advertising.”
The new estimates confirm earlier predictions made by eMarketer, with the US analyst forecasting 2005 ad revenues would reach £12.3 billion in 2005 (see US Online Adspend To Hit $12.9 Billion In 2005).
The IAB, PwC and eMarketer all expect internet advertising expenditure to continue to grow. David Hallerman, eMarketer’s senior analyst for advertising and marketing expects an increase of 24.7% for 2006, with internet ad spend reaching $15.6 billion, surpassing any other current ad medium.
Meanwhile, in the UK OPera Media predicts online advertising to continue the strong growth that it has shown recently, with the growth this year at 40%, slowing to 35% next year. By 2010, the value of online advertising is projected to reach £2.3 billion, up from £912 million in 2005 (see UK Adspend To Hit £15 Billion By 2010).
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