The Interactive Advertising Bureau  and PricewaterhouseCoopers  today announced that Internet advertising revenues for 2005 are estimated to exceed $12.5 billion, a 30% increase over the previous revenue record of $9.6 billion in 2004. The 2005 Q4 revenues totaled a record $3.6 billion; making it the second consecutive quarter to surpass the $3 billion mark and the highest quarter reported. Fourth quarter revenues represent a 35 percent increase over the same period in 2004 and a 17 percent increase over Q3 of 2005.

“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,” said Greg Stuart, CEO, IAB.  “Furthermore, this continued increase in spending supports the cross media research that proves Interactive as 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.”

“The media landscape has clearly changed with more and more marketers realizing that there is much to be gained from online advertising.” said David Silverman, Partner, Assurance Services, PricewaterhouseCoopers, “With the increase in broadband penetration further enhancing how messages get delivered, we should continue to see a favorable environment for increased Internet ad spend.”

The 2005 fourth quarter and full year online ad revenue figures were estimated by surveying and aggregating data from the top 15 online ad sellers.  The results were then extrapolated to calculate the total estimated industry revenue figure.  Actual third and fourth quarter results will be reported in the full 2005 Internet Advertising Revenue Report, expected in April 2006.

The IAB sponsors the Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PricewaterhouseCoopers.

About the IAB:
Founded in 1996, the Interactive Advertising Bureau (www.iab.net) represents over 225 leading interactive companies that actively engage in, and support the sale of interactive advertising. IAB members are responsible for selling over 86% of online advertising in the United States. On behalf of its members, the IAB evaluates and recommends standards and practices; fields interactive effectiveness research, and educates the advertising industry about interactive advertising.