IAB: Interactive Advertising Revenues Reach $12.5 Billion

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The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) today released the Internet Advertising Revenue Report, which includes final numbers for Q3, Q4, and full year 2005. The report states that Search, Classifieds, Display, and Rich Media all continue to grow at a healthy rate. But overall, 2005 Internet advertising revenues in the US for totaled $12.5 billion, reaching a new annual record exceeding 2004 by 30%. Q4 2005 Internet ad revenues totaled a record $3.6 billion, representing a 34% increase over same period in 2004.

“Interactive Advertising continues to experience tremendous growth as marketers experience its overall effectiveness in building brands and delivering online and offline sales,” said IAB CEO Greg Stuart in a press statement. “We are confident that this growth trend will continue as more marketers find Interactive to be imperative, and additional platforms including broadband video, gaming, iPTV and others continue to emerge as real opportunities.”

Peter Petrusky, Director, Advisory of PwC, adds, “Continued strong growth in online advertising documents that an increasing number of advertisers and marketers see the Internet is an essential brand-building component in their media planning,” adds “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.”

The report finds that keyword search is still the top earner in the online ad field, reaping a 41% share of the overall of market in 2005.

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