The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) announced that internet advertising revenues totaled a record $3.1 billion for the third quarter of 2005.

The Q3 results represent a 33.9 percent increase over 2004 third-quarter total of $2.3 billion and a 4.7 percent increase over the 2005 second-quarter total of $2.9 billion.

The two companies speculate that the annual revenue run rate for 2005 could exceed $12 billion. Last year, according to the IAB and PwC, online advertising revenues totaled $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. 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," says Greg Stuart, president and CEO, IAB.

"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.