TELECOM Digest OnLine - Sorted: Web Advertising up 26 percent in Second Quarter

Web Advertising up 26 percent in Second Quarter

Reuters News Wire (
Mon, 26 Sep 2005 17:33:07 -0500

U.S. Internet advertising revenue grew 26 percent to $3 billion in the
second quarter, driven by paid search listings and more sophisticated
video and audio ads known as rich media, according to a study released
on Monday.

The data provided by the Interactive Advertising Bureau and
PricewaterhouseCoopers bolsters expectations that advertisers are
spending more on the Internet as consumers devote more time to the Web
and away from other media.

Online ad revenue in the first half of the year also rose 26 percent,
to $5.8 billion, from a year earlier.

"The consistent growth in overall revenues shows marketers may be
shifting more of their total advertising budgets to online," said
David Silverman, partner at PricewaterhousCoopers.

Paid search listings, which allow advertisers to pay to display ads
next to relevant search terms, remain the bulk of online advertising
at 40 percent, buoying results for Internet companies like Yahoo and
Google .

Regular display ads, such as Web page banners, represent 20 percent of
online advertising, classified ads grew slightly to 18 percent, while
rich media comprises 8 percent.

The IAB represents 200 online companies responsible for selling nearly
90 percent of Internet advertising in the United States.

Copyright 2005 Reuters Limited.

NOTE: For more telecom/internet/networking/computer news from the
daily media, check out our feature 'Telecom Digest Extra' each day at . Hundreds of new
articles daily.

Post Followup Article Use your browser's quoting feature to quote article into reply
Go to Next message: Reuters News Wire: "Microsoft Starts Selling Paid Search Ads on MSN"
Go to Previous message: Brett Martel: "Rescuers Find More Survivors, More Damage"
TELECOM Digest: Home Page