The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) announced that internet advertising totaled approximately $2.8 billion in the first quarter of 2005.

The IAB reports that Q1 2005 is the highest reported quarter in nine consecutive growth quarters. The $2.8 billion represents a 26 percent increase over Q1 2004 ($2.2 billion).

"Marketers continue to recognize the relevance of interactive as an integral part of their marketing mix. The continued and steady growth we have experienced over the past two years is a clear indication that this medium delivers results and is fast becoming accepted as part of the mainstream," says Greg Stuart, president and CEO, IAB.

Analysts at PwC note the rise of broadband as a contributing factor of internet advertising's growth.

"While the online audience gets bigger and broader, the TV audience continues to fragment, even as the cost of advertising spots rises. Add the growth of broadband in the home, which enables advertisers a platform to deliver rich media, and brand advertisers have a new mass audience to target. The economics are too compelling for marketers to ignore," says Tom Hyland, partner and new media group chair, PricewaterhouseCoopers.