IAB/PwC Release First Quarter 2005 Internet Ad Revenue Figures -
$2.8 Billion Q1 2005 is 26% over Q1 2004

New York, NY (June 6, 2005) – The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) today announced that Internet advertising totaled over $2.8 billion for the first quarter of 2005 making this the highest reported quarter in nine consecutive growth quarters. Q1 2005 revenues represent a 26 percent increase over Q1 2004 ($2.2 billion) and a 4.3% increase over Q4 2004 ($2.7 billion.)
“Marketers continue to recognize the relevance of interactive as an integral part of their marketing mix,” said Greg Stuart, president and CEO of the IAB. “The continued and steady growth we have experienced over the past 2 years is a clear indication that this medium delivers results and is fast becoming accepted as part of the mainstream.”
“While the online audience gets bigger and broader, the TV audience continues to fragment, even as the cost of advertising spots rises,” notes Tom Hyland, Partner and New Media Group Chair, PricewaterhouseCoopers. “Add the growth of broadband in the home, which enables advertisers a platform to deliver rich media, and brand advertisers have a new mass audience to target. The economics are too compelling for marketers to ignore.”
The IAB sponsors the Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PwC. The full report is issued twice yearly for full and half-year data, and top-line quarterly figures are issued for the first and third quarters.
About the Internet Advertising Revenue Report:
Conducted by the New Media Group of PricewaterhouseCoopers the "Advertising Revenue Report" was started by the IAB in 1996, and represents data from all companies that report meaningful online advertising revenues. The results are the most accurate measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertising on the Internet. 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. First and third quarter revenue reports are estimates, with the actual figures being released along with second and fourth quarter data respectively.
About PricewaterhouseCoopers:
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services for public and private clients. More than 120,000 people in 144 countries connect their thinking, experience and solutions to build public trust and enhance value for clients and their stakeholders.
Unless otherwise indicated, "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP, a Delaware limited liability partnership. PricewaterhouseCoopers LLP is a member firm of PricewaterhouseCoopers International Limited.
About the IAB:
Founded in 1996, the Interactive Advertising Bureau (IAB) represents over 200 leading interactive companies that are actively engaged in, and support the sale of interactive advertising. IAB members are responsible for selling over 86% of online advertising in the United States. On behalf of its members, the IAB evaluates and recommends standards and practices, fields interactive effectiveness research and educates the advertising industry regarding the use of interactive advertising. For more information, please visit www.iab.net.

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