(22 April 2006 2:00 pm)

MUMBAI: Overall internet advertising revenues in the US for 2005 totalled $12.5 billion, a new annual record exceeding 2004 by 30 per cent, according to a survey done by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).

The report states that search, classifieds, display and rich media all continue to grow at a healthy rate. The Q4 2005 internet advertising revenues totalled a record $3.6 billion, representing a 34 per cent increase over same period in 2004.

"Interactive Advertising continues to experience tremendous growth as marketers experience its overall effectiveness in building brands and delivering online and offline sales. We are confident that this growth trend will continue as more marketers find Interactive to be an imperative and additional platforms including broadband video, gaming, IPTV and others continue to emerge as real opportunities," said Interactive Advertising Bureau CEO Greg Stuart.

"The Internet continues to be a vibrant and ever-changing channel, providing advertisers with broad offerings that enable them to promote their brands using a highly cost effective platform. This year's record figure of annual Internet advertising revenue demonstrates the enduring enthusiasm for the medium as a whole," said PwC partner, assurance David Silverman.

"Continued strong growth in online advertising documents that an increasing number of advertisers and marketers see the Internet is an essential brand-building component in their media planning. The Internet delivers the right audience at the right time, a winning combination for all types of marketers. We expect to see continued growth in Internet advertising spend," added PwC director, advisory Peter Petrusky.

Conducted by the New Media Group of PwC, the "Advertising Revenue Report" represents data from all companies that report meaningful online advertising revenues. The survey includes data concerning online advertising revenues from web sites, commercial online services, free e-mail providers and all other companies selling online advertising.