IAB/PWC: 2005 Online Revenues = $12.5 Billion

By Greg Sterling

According to the Interactive Advertising Bureau and PriceWaterhouseCoopers, US 2005 online ad revenues were $12.5 billion, representing a 30.3% increase vs. 2004. Overall, Internet ad revenues constituted 4.7% of total US ad spending, which is up from 3.7% in 2004.

US paid search revenues were $5.1 billion or 41% of the total. Display advertising, which includes rich media, was worth $4.3 billion or 34% of the total. Classifieds related revenue was worth $2.1 billion in 2005, or 17% of the total.

Consumer-related marketing was the largest single category of ad spending at $6.4 billion. The includes Retail at 47% of category spending, Automotive at 20%, Leisure (travel, hotel & hospitality) at 14%, Entertainment (music, film & TV entertainment) at 10% and CPG at 5%.

After consumer-related advertising were Financial Services at $1.5 billion, Computer-related advertising at $1.6 billion, Telecom at $800 million and Media at $700 million.

The full report can be downloaded here.

3 Responses to “IAB/PWC: 2005 Online Revenues = $12.5 Billion”

  1. Screenwerk » Blog Archive » Yahoo! Takes on CNET Says:

    [...] The site also creates more highly targeted display and search ad inventory for Yahoo! Computer-related online advertising generated $1.6 in revenues last year according to the IAB. It was the third largest category after the catch-all "consumer related" (retail, auto, travel, entertainment) and financial services. [...]

  2. Search Engine Journal » Yahoo Tech Channel Taking on CNET Says:

    [...] The site also creates more highly targeted display and search ad inventory for Yahoo! Computer-related online advertising generated $1.6 in revenues last year according to the IAB. It was the third largest category after the catch-all “consumer related marketing” (retail, auto, travel, entertainment) and financial services. [...]

  3. Screenwerk » Blog Archive » Online Moms and Their Pubs Says:

    [...] Ad revenues at consumer-oriented magazines in the US were almost $13 billion in 2005. The Internet as a whole came in at about $12.4 billion, according to the IAB. Various pundits and spinmeisters have predicted that soon (maybe this year) the Internet will surpass magazines as an advertising medium. [...]

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