Thursday, March 02, 2006

Online Ad revenues grow 35% in Q4

Online Ad revenues in the fourth quarter surged to a record $3.6 billion This is an increase of 35 percent from the last three months of 2004, according to a report released Wednesday by the IAB and PricewaterhouseCoopers. The IAB also estimates that Internet ad spending totaled $12.5 billion for the year, representing a 30 percent increase from 2004. While that growth rate is impressive, it's slight slow down to the 32 percent growth between 2003 and 2004.

This year, growth is likely to decelerate again, although it will probably be at least 20 percent, predicted Greg Stuart, CEO of the IAB. "There comes a point where you wouldn't continue to see the same acceleration year after year after year," Stuart said. In the last five years, the second quarter of 2004 showed the highest growth, with online ad spending increasing by 43 percent over the second quarter of 2003.
The current IAB estimates come on the heels of Yahoo's and Google's fourth-quarter stock reports that also showed double-digit gains, although at a slower growth rate than Wall Street had predicted.

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