US Net ad revenues surge by a third to hit $9.6bn

The latest figures from the IAB US, follow recent figures in the UK
showing ad expenditure skyrocketed by 60 percent last year, to about
$1.2 billion, overtaking radio advertising in the UK.<br>
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"Interactive advertising has clearly become a mainstream medium and one
that can no longer be ignored," said Greg Stuart, president of the
Interactive Advertising Bureau (IAB) in the US. <br>
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Interactive
advertising, he added, is on track to surpass consumer magazine ad
revenues in the US.<br>
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The IAB said Internet ad revenue of $9.6 billion in 2004 contrasted
with ad revenue in 2003 of $7.27 billion and exceeded the previous
revenue record of 2000 by almost 20 percent. <br>
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Fourth-quarter revenue
grew to $2.69 billion, the highest level for a three-month period.<br>
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Paid search listing revenue jumped 40 percent to $3.9 billion, display
advertising rose 19 percent to $1.8 billion and rich media grew 10
percent to just under $1 billion, according to the IAB.<br>
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Online classified ads grew 18 percent to $1.7 billion, representing a growing threat to traditional newspaper classifieds.<br>
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Consumer advertisers continue to represent the largest category of
online advertisers, accounting for 49% of 2004 Internet ad revenues.
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Computing and financial services accounted for 18% and 17%,
respectively, of 2004 total ad spending, while pharmaceutical and
healthcare accounted for 6% and telecommunications represented 4%.<br>
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Within the consumer category, 2004 online ad spending in the retail
subcategory accounted for 40%, followed by automotive at 19%,
entertainment at 13%, leisure at 16% and packaged goods at 7%.<br>