Online ad revenue up 30% in 2005

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New York—Internet ad revenue totaled $12.5 billion in 2005, up 30% over Internet ad revenue in 2004, according to the Internet Ad Revenue report by the Interactive Advertising Bureau and PricewaterhouseCoopers.

In the fourth quarter, Internet ad revenue reached $3.6 billion, up 34% over revenue in the fourth quarter in 2004. Keyword search grabbed the lion’s share of online advertising in 2005, making up 41% of all Internet ad revenue.

Display advertising, including all banner ads, sponsorships and rich media formats, made up 34% of total online ad revenue. Classified ads contributed 17% to total revenue.

The full report is available at

—Kate Maddox

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