U.S. internet advertising revenues totaled $12.5 billion in 2005, a new annual record exceeding 2004 levels by 30 percent, according to the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) final "Internet Advertising Revenue Report." Search, classifieds, display and rich media all continue to grow at healthy rates, according to the report. In 4Q05, internet advertising revenues totaled a quarterly record $3.6 billion, or a 34 percent increase over the 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 Greg Stuart, IAB CEO, in a statement. "We are confident that this growth trend will continue as more marketers find interactive to be an imperative - and additional platforms, including broadband video, gaming, iPTV and others, continue to emerge as real opportunities."

"The Internet continues to be a vibrant and ever-changing channel, providing advertisers with broad offerings that enable them to promote their brands using a highly cost effective platform," says David Silverman, partner, Assurance, PwC.

"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," says Peter Petrusky, director, Advisory, PwC. "We expect to see continued growth in Internet advertising spend."