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Interactive advertising revenues reach $9.6 billion in 2004: IAB

On Target Media staff, press release

Singapore, April 29, 2005

The Internet Advertising Revenue Report for 2004, released by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC), reveals that search, classifieds, display and rich media advertising revenues continue to grow at a healthy rate. Overall interactive advertising revenues rose nearly 33 percent over 2003 totaling over $9.6 billion, with Q4 2004 revenues reaching a record $2.69 billion, marking the highest quarter ever reported.

"Interactive Advertising has clearly become a mainstream medium and one that can no longer be ignored as a critical piece of any marketing mix. (Interactive advertising) is squarely on track to surpass consumer magazine revenues," said Greg Stuart, president and CEO of the IAB.

The report also shows that the gap between CPM-based pricing and performance-based pricing has narrowed significantly. In fact, performance-based advertising, mainly comprising search advertising, recorded a 4-percentage points growth over last year and accounted for 41% of all Internet advertising. Impressions/ CPM-based advertising accounted for 42% of the total advertising revenues reported.

"The results reported for 2004 confirm a very healthy environment for online advertising, for both direct marketers seeking immediate performance results, as well as brand advertisers looking to create or enhance an image, product or service," said Pete Petrusky, Director, Advisory Services, PricewaterhouseCoopers. "Moreover, the Internet is the only medium to adopt a global standard for impression measurement, intended to simplify the buying and selling process for online advertising."

A copy of the full report is available for download at http://www.iab.net/2004adrevenues.

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