US Internet Advertising Continues to Expand

24 April 2006

US online advertising hit record levels in 2005, according to final figures released by the Internet Advertising Bureau.

The numbers, verified by PricewaterhouseCoopers, show internet adspend at $12.5 billion (€10.12bn; £7.01bn), up 30% on 2004. The figure represents 4.7% of total US adspend last year, up from around 3.7% in 2004.

The fourth quarter was strongest in terms of revenue, coming in at $3.6bn, an increase of 34% on the same period the previous year.

Search engine ads were the drivers of the boom, claiming 41% of advertising dollars, while spending on display advertising such as banners and sponsorships attracted 34% of budgets.

The report also reveals that 72% of 2005 ad dollars was allocated to the top ten web media companies - a figure unchanged from 2004.

Hypes IAB president/ceo Greg Stuart: "Interactive advertising continues to enjoy tremendous growth as marketers experience its overall effectiveness in building brands and delivering online and offline sales."

Data sourced from Adweek (USA); additional content by WARC staff