Insightful articles, opinion and commentary about mobile and web.

New York, NY (Sept. 20, 2004)  Today, during Interactive Advertising World Conference and Expo, the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers released the Internet Advertising Revenue Report covering Q2 and the first six months of 2004. Internet advertising revenues (U.S.) for the first six months of 2004 were approximately $4.6 billion - a 39.7% increase over the first half of 2003. Internet advertising revenue totaled approximately $2.37 billion for the second quarter of 2004, representing a 42.7% increase over same period 2003. Q2 2004 revenues represent a 6% increase over Q1 2004. This report replaces the previously announced Q1 2004 estimate of $2.27 billion with the actual of $2.23 billion. The Interactive Advertising Bureau (IAB) sponsors the Internet Ad Revenue Report, which is conducted independently by the New Media Group of PricewaterhouseCoopers (PwC). The full report is issued twice yearly at the full and half year, and top-line quarterly estimates are issued for the first and third quarters. “Internet Advertising is without question taking share from the other media at this time and for good reason- marketers have figured out that online advertising is often the most cost effective medium for influencing both branding and sales results. This data is fuelled by recent public announcements that online ad budgets are dramatically increasing, for instance approximately 25% is going online for Fords Lincoln Mercury and approximately 50% for Vonage, said Greg Stuart, President & CEO of the IAB. “Not surprisingly, search continues its popularity, and his been embraced by advertisers due to its innate relevancy, the simplicity of the results and because advertisers can determine more precise response rates. In addition, for the first time in a number of years, we see a 25% growth rate collectively in Rich Media and Display Advertising, said Pete Petrusky, Director, New Media, PricewaterhouseCoopers. “The industry has been experimenting with different formats since the beginning, and while search has been the strongest format recently, we think that evolution process will continue. In fact, as broadband begins to reach critical mass in the home we think the number of traditional advertisers with branding objectives will further increase as it provides a better platform for more compelling media ads and video formats, said Tom Hyland, Chair, PricewaterhouseCoopers New Media Group. The following highlights key revenue data breakouts comparing the second quarter of 2004 with the same period in 2003: Ad Formats  As compared to 2Q 2003, four formats experienced significant year over year growth. For example, Search has grown 97% in absolute dollars and Rich Media has grown 27% in absolute dollars.