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2005 Online Advertising Numbers Explode

Posted on 4.24.2006

The numbers are in for 2005 and they are impressive.

The Internet Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC), both respected authorities for Internet advertising information, announced that total online advertising revenues in the US reached $12.5 billion for 2005.  This figure is 30% higher than 2004, that saw $9.6 billion.  Revenues totaled $3.6 billion alone in the fourth quarter of 2005, 33.9% higher than the fourth quarter of 2004.

Clearly business is booming, but are we in for another bust?  David Silverman, Partner at PricewaterhouseCoopers LLP doesn't think so.  “The Internet continues to be a vibrant and ever-changing channel, providing advertisers with broad offerings that enable them to promote their brands using a highly cost effective platform. This year’s record figure of annual internet advertising revenue demonstrates the enduring enthusiasm for the medium as a whole.”

Some highlights from the IAB Internet Advertising Report; Search leads all online advertising with 41% of spending, up slightly from 2004.  Display (34%), classifieds (17%), referrals and lead generation (6%) and email (2%) round out the top five.  The importance of search and site search is clear.

The upcoming May issue of Website Services Magazine is all about e-commerce and getting the most out of your online business.

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