Internet ad revenues reach $5.8 billion in US, up 26% over 2004

MUMBAI: Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) released Internet Advertising Revenues covering Q2 and the first six months of 2005 during the the MIXX Conference and Expo. The internet advertising revenues (US) for the first six months of 2005 were approximately $5.8 billion, a new record and a 26 per cent increase over the first half of 2004.

Internet advertising revenue totaled $2.985 billion, just shy of $3 billion for the second quarter of 2005, representing a 26 per cent increase over same period 2004. Q2 2005 revenues represent a 6.6 per cent increase over Q1 2005


"It is clear from this continued growth, that most agencies and marketers are now committed to Interactive as a critical medium in reaching their audiences, as well as engaging them in more immersive brand experiences. At the end of the day, it is about increased effectiveness from your marketing dollars and Interactive delivers this," said IAB president and CEO Greg Stuart.



"The consistent growth in overall revenues shows marketers may be shifting more of their total advertising budgets to online. This is a natural development as research shows more consumers are spending a larger percentage of their media time online, while the flow of advertising dollars follows," said PricewaterhouseCoopers partner David Silverman.



This year's report includes a redefined Referral category that specifically includes Lead Generation, the more common industry language for this category of activity. The Referral/Lead Generation category is six per cent of total spending.

"Recent results show marketers recognize the Internet as an effective response and branding vehicle, as evidenced by the continued strength in Search and Rich Media. Search increased 27 per cent while Rich Media increased 26 per cent," adds PricewaterhouseCoopers director, advisory services Peter Petrusky.

The following highlights key revenue data breakouts; dollar figures are rounded ($ millions):

Ad Formats - Internet ad revenues broken down by ad formats are:


FH 2005

FH 2004


40% ($2,315)

40% ($1,817)

Display Ads    

20% ($1,157)

20% ($942)


18% (1,041)

17% ($782)

Rich Media    

8% ($463)

8% ($368)

Referrals/Lead Generation*    

6% ($347)

2% ($114)


5% ($317)

9% ($414)


2% ($116)

2% ($70)

Slotting Fees    

1% ($58)

2% ($92)

*Renamed category in 2005 specifically including Lead Generation activity; 2004 referred to simply as "Referrals"

Industry Concentration - Concentration of revenues by the top 10, top 25 and top 50 has remained consistent.


FH 2005

FH 2004

Top 10    

74% ($3,401)

74% ($3,401)

Top 25    

87% ($5,035)

89% ($4,096)

Top 50    

96% ($5,555)

97% ($4,459)

Pricing Models - CPM pricing continues to be the predominant choice for buyers and sellers, at a slight cost to Performance Deals and Hybrid.


FH 2005

FH 2004

CPM or Impression    

48% ($2,750)

45% ($2,068)

Performance Deals    

40% ($2,315)

38% ($1,749)


12% ($722)

17% ($782)

Conducted by the New Media Group of PricewaterhouseCoopers the "Advertising Revenue Report" was started by the IAB in 1996, and represents data from all companies that report meaningful online advertising revenues.

The survey includes data concerning online advertising revenues from websites, commercial online services, free e-mail providers, and all other companies selling online advertising. First and third quarter revenue reports are estimates, with the actual figures being released along with second and fourth quarter data respectively.

Latest Reads
Nucleus wins PR mandate for Zolostays

Nucleus Public Relation has bagged the PR mandate for Zolostays, a co-living solutions provider, as it looks to enhance its brand visibility in India. Zolostays offers affordable, fully managed accommodations, which include food, utilities and housekeeping services.

MAM Marketing MAM
Uber appoints Pradeep Parameswaran as its new India head

Ride-sharing app Uber on Tuesday appointed Pradeep Parameshwaran as its new India and Asia head. The company's move is in line with its aim to double down on its investment in the country, as it looks to grab market share from home-grown rival Ola (ANI Technologies Pvt Ltd).

MAM Media and Advertising People
Adidas wakes up entire neighbourhood to celebrate Football

Dentsu Aegis Network’s flagship media agency Carat, has partnered with the network’s OOH agency Posterscope, to launch a massive campaign for FIFA World cup 2018. The idea was to create buzz and excitement around FIFA and to own conversations around the World cup for Adidas in a cricket dominated...

MAM Media and Advertising Ad Campaigns
Blush’s latest video titled ‘The Choice’ in association with Indira IVF

Indira IVF, in collaboration with Culture Machine’s digital channel ‘Blush’, released a video titled ‘The Choice’, as a part of Blush's on-going Mothers & Daughters series.

MAM Marketing MAM
Arun Sharma elevated to COO for Delhi business at Initiative

Initiative, which is a full-service media agency from IPG Mediabrands, has promoted Arun Sharma to the role of chief operating officer for Delhi business.

MAM Media and Advertising People
Apple signs multi-year deal with Oprah Winfrey

MUMBAI: Remember the Oprah Winfrey show? The unstoppable business woman  behind the show has now signed a multi-year content partnership with technology company Apple. Winfrey will work with the iPhone maker to produce TV shows for its forthcoming streaming service. Winfrey is a renowned media...

MAM Marketing Brands
Hypercollective brings up an BBG's emotional short film on this Father's Day

The short film is created by Hyper Collective, an collaborative communication, technology and marketing company headed by KV Sridhar aka Pops.

MAM Media and Advertising AD Agencies
Dentsu Webchutney, Filpkart launch unique campaign with Instagram emoji slider feature

MUMBAI: Dentsu Webchutney, the multinational media and marketing communication company, has today launched a unique campaign using Instagram’s emoji slider feature for the exclusive launch of Honor 7A-SlideShot on Filpkart. The emoji slider sticker on Stories, is another fun place where your...

MAM Media and Advertising Ad Campaigns
Google invests $550 million in Chinese e-commerce company

MUMBAI: American multinational technology company, Google, is all set to invest $550 million in China’s second largest e-commerce company The move comes as part of the technology giant’s effort to expand its presence in fast growing Asian market. Under the agreement, Google will receive 27...

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories