Internet ad revenue in 3Q05 reached a record $3.1 billion, 33.9 percent more than in 3Q04 - and the first time that quarterly revenue crossed $3 billion - raising hopes that it could reach $12 billion for the year (which would also be a record), writes DM News, citing PricewaterhouseCoopers estimates prepared for the Interactive Advertising Bureau. The third-quarter figures were, despite the traditionally sluggish month of August, 4.7 percent higher than the second quarter's $2.9 billion.
IAB and PwC anticipate that online ad revenue for 2005 will jump more than 20 percent from last year's $9.6 billion, driven by the internet's ability to shrink the business cycle for advertising, marketing and branding. Traditional advertisers are accordingly moving dollars online and away from other channels.
IAB CEO Greg Stuart attributed the strong spending growth to increased brand advertising and continued strength in direct-response ads, a large portion of which are connected to search, writes AdWeek.
