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Record Setting Quarter for Internet Advertising
IAB / Pwc report nearly $2.4B in Internet ad revenue in Q2/2004 - up 42.7% from Q2/2003
Adapted from Internet Advertising Bureau and PricewaterhouseCoopers data

The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers released last week the Internet Advertising Revenue Report covering Q2 and the first six months of 2004. Internet advertising revenues (U.S.) for the first six months of 2004 were approximately $4.6 billion - a 39.7% increase over the first half of 2003. Internet advertising revenue totaled approximately $2.37 billion for the second quarter of 2004, representing a 42.7% increase over same period 2003 and marks the seventh consecutive quarter of growth according to PWC and IAB. Q2 2004 revenues represent a 6% increase over Q1 2004.

"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 fuelled by recent public announcements that online ad budgets are dramatically increasing,” said Greg Stuart, President & CEO of the IAB in a September 20 press release.

While search continues its popularity, we see a 25% growth rate in Internet Display Advertising said Pete Petrusky, Director, New Media, PricewaterhouseCoopers.

The following highlights key revenue data breakouts comparing the second quarter of 2004 with the same period in 2003:

Source: Internet Advertising Bureau/PricewaterhouseCoopers

Industry Categories – In the second quarter of 2004, consumer advertisers continued to lead the way in online advertising spending, accounting for 49 percent of total revenues, up sharply from the same period last year. The top five categories include:

Source: Internet Advertising Bureau/PricewaterhouseCoopers

About the Internet Advertising Revenue Report
Conducted by the New Media Group of PricewaterhouseCoopers LLP, the "Advertising Revenue Report" was started by the IAB in 1996, and represents data from all companies that report meaningful online advertising revenues. The results are the most accurate measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertising on the Internet. The survey includes data concerning online advertising revenues from Web sites, commercial online services, e-mail providers, and all other companies selling online advertising. The full report is issued twice yearly at the full and half year, and top-line quarterly estimates are issued for the first and third quarters.