Online Advertising Revenue Continues Growth
According to the most recent report from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers, Internet ad revenue climbed to $3.864 billion for the first quarter of 2006. This is a 38% increase from last year’s first quarter revenue of about $2.8 billion, and is also a 6% jump from the $3.6 billion raked in during the fourth quarter of 2005.
“The steady growth of online advertising is a clear indication that marketers continue to believe in the opportunities and effectiveness that this medium delivers in reaching and engaging their consumers,” said CEO of IAB, Greg Stuart.
The majority of this revenue landed in the pockets of Google. The search giant reported that it took in $2.25 billion of online ad revenue during the first quarter, which would leave about $1.6 billion for the rest of the industry to fight over.
As consumers continue to flock to the Web for more convenient and personalized access to products and services, marketers are showing that they are more than willing to meet them there.
If this pace is maintained for the rest of the year online ad revenue would reach $15 billion, which would far exceed the $12.5 billion earned all of last year.
Internet advertising revenue is reported twice a year by the IAB and PwC during the first and third quarters. Figures are based on top-line estimates. The IAB represents 250 companies that are involved in the sale or support of interactive advertising. These companies account for 86% of online ad sales in the U.S.
Sources:
http://www.dmnews.com/cms/dm-news/shows-assns/36921.html
http://www.webpronews.com/insiderreports/marketinginsider/wpn-50-
20060531InternetAdRevenueNear4BForQuarter.html
