The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) announced that Internet advertising revenues for 2005 are estimated to exceed $12.5 billion, a 30% increase over the previous revenue record of $9.6 billion in 2004. The 2005 Q4 revenues totaled a record $3.6 billion; making it the second consecutive quarter to surpass the $3 billion mark and the highest quarter reported.

Fourth quarter revenues represent a 35 percent increase over the same period in 2004 and a 17 percent increase over Q3 of 2005.

“As consumers continue to embrace the Internet as an integral part of their everyday lives, marketers continue to acknowledge that Interactive is a critical medium to engage their customers and create deeper brand experiences,” said Greg Stuart, CEO, IAB. “Furthermore, this continued increase in spending supports the cross media research that proves Interactive as often the most cost-effective way to drive increased ROI. We fully expect Interactive to continue to play an ever increasing role of importance for marketers.”

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