Online advertising dollars up more than 40 percent over last year, study says.
Internet advertising revenue in the United States leaped in the last year, according to the new Internet Ad Revenue Report study, conducted by the New Media Group of PricewaterhouseCoopers (PwC) and sponsored by the Interactive Advertising Bureau (IAB).
Web advertising revenue totaled $2.37 billion in the second quarter of 2004, representing a 42.7 percent increase from last year,
The report found that for the first six months of 2004, U.S. Internet advertising revenue totaled approximately $4.6 billion -- a 39.7 percent increase over the first six months of 2003.
Consumer advertising was the top category in online advertising spending, accounting for 49 percent of total revenues for the second quarter in 2004. Last year in the same quarter, consumer advertising accounted for 35 percent of total revenues.
"Internet Advertising is without question taking share from the other media at this time, and for good reason -- marketers have figured out that online advertising is often the most cost effective medium for influencing both branding and sales results. This data is fueled by recent public announcements that online ad budgets are dramatically increasing, for instance approximately 25 percent is going online for Ford’s Lincoln Mercury and approximately 50 percent for Vonage,” says Greg Stuart, president and chief executive editor of the IAB.
The study found that search format ads have grown 97 percent in absolute dollars in 2Q 2004 compared to 2Q 2003. Rich media has grown 27 percent in absolute dollars.
Internet Ad Formats Table
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*In 2004, the “interstitial” format was combined within the “rich media” category. Dollar figures are rounded