Internet Ad Revenues Continued to Grow in the Fourth Quarter

Internet advertising revenues surpassed $3 billion for the second consecutive quarter in Q4 of 2005, according to an estimate from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).

The researchers found revenues reached $3.6 billion in the last three months of 2005, which represents a 17 percent increase over Q3 2005. It also marks a 35 percent increase over the same period in 2004.

“You continue to see acceleration, and that’s very unusual for anything,” IAB Chief Executive Officer Greg Stuart told ClickZ News. “We’re continuing to see greater acceleration, even at these incredibly big numbers. Marketers are really catching up to the consumer shift.”

David Silverman, PwC’s partner for assurance services, attributed the increase to increased broadband penetration, and how it enhances message delivery.

Based on the estimated fourth quarter numbers, the IAB and PwC believe the full-year 2005 revenue figures will exceed $12.5 billion. That figure accounts for a 30 percent increase over 2004 online ad revenues. The actual figures for the second half and full-year of 2005 are expected next month in the Interactive Advertising Revenue Report.

The researchers come up with their figures by surveying and aggregating data from the top 15 online ad sellers. They then extrapolate to calculate the total for the industry as a whole.