The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) have revealed that Internet advertising revenues totaled a record $3.1 billion for the third quarter of 2005, making this the highest quarter reported and the first time quarterly revenues surpassed $3 billion.
The 2005 third-quarter revenues represent a 33.9 percent increase over 2004’s third-quarter total of $2.3 billion and a 4.7percent increase over the 2005 second-quarter total of $2.9 billion. Based on historical data, the annual revenue run rate for 2005 could exceed $12 billion, well above last year’s record total of $9.6 billion.
“More and more marketers have embraced interactive as an essential medium to reach and engage their consumers in more immersive brand experiences,” said Greg Stuart, president and chief executive of IAB. “Moreover, interactive advertising continues to prove itself as the most cost-effective medium in driving sales and changing consumer attitudes, providing a powerful competitive edge for these marketers.”
“The continued strength in Internet advertising reflects, in part, the medium’s unique ability to collapse the business cycle for advertising, marketing, and branding, making it more attractive for traditional advertisers,” said Pete Petrusky, director of advisory services for PwC. “The high percentage growth in revenues is more significant given the larger revenue base.”
David Silverman, a partner in assurance services at PwC, added, “The third-quarter figures are the most impressive we’ve seen yet. Clearly advertisers are realizing the benefits of shifting more of their total advertising budgets to online. It is an exciting prospect that the annual run rate may exceed $12 billion.”
The IAB sponsors the Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PricewaterhouseCoopers. The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first and third quarters.
