The Internet Advertising Bureau revealed yesterday that online advertising spend surged by 182% year-on-year in the first quarter. Totalling $1.95 billion, expenditure was also 9.9% ahead of the last fiscal’s strong fourth quarter.

The report, compiled by PricewaterhouseCoopers, lists consumer-related ads as the top spending category, accounting for 31% of online ad revenues - and over double the amount spent by the financial services sector (15%). Computing also accounted for 15%, with new-media companies contributing 12%, business services 10% and classified 4%.

Says IAB chair Rich LeFurgy: "The market correction and subsequent dot-com closures had some impact in slowing growth in the second quarter." However, this was offset by traditional marketers’ increasing their online budgets. "Time will tell what effect, if any, recent developments will have on the growth of online advertising."

News source: Advertising Age - Interactive Daily