INTERNET AD REVENUE GREW 43% IN SECOND QUARTER

Search Advertising Continues to Show Strongest Growth

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NEW YORK (AdAge.com) -- Internet advertising revenue grew to $2.4 billion for the second quarter of 2004, a 43% increase from the year-ago period, according to a study from the Interactive Advertising Bureau and PricewaterhouseCoopers. Revenue for the first six months of this year increased to $4.6 billion -- a 40% spike over the first half of 2003.

Not small anymore
"It's not like the Internet is a small medium anymore," said Greg Stuart, president and CEO of the IAB. Mr. Stuart made his remarks at IAB's Interactive Advertising World conference, which started yesterday and runs through today as part of Advertising Week in New York City. "We're already at $7 billion [for the year to date]. "This is going to put us over $9 billion for the year."

Among different types of online advertising, search continues to be popular and boasts the strongest growth as a percentage of total revenue. Search ballooned to $947 million for the second quarter of 2004, which is a 40% increase. But display ads increased to $474 million, a 20% growth.

Classified ads
Classifieds are No. 3 in the category, with a 17% expansion as a percentage of total advertising, followed by sponsorships at 9% and rich media at 8%.

The study, which represents data from all companies that report meaningful online ad information, also showed that consumer advertisers led the way in online advertising spending, accounting for nearly 50% of total revenue. Following consumer, the top four advertising categories are computing, financial services, media and financial services and health care.

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