Six-Month Totals Show 26% Increase Over 2004

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NEW YORK ( -- Internet advertising revenue for the first six months of 2005 hit a record new high, according to a report by the Interactive Advertising Bureau and PricewaterhouseCoopers, released at the Mixx Conference and Expo yesterday in New York.

Ad revenue for the second quarter totaled slightly less than $3 billion. For the first six months, revenue reached about $5.8 billion, which is a 26% increase over the first half of 2004.

Marketers shift
“The consistent growth in overall revenue shows marketers may be shifting more of their total advertising budgets to online,” David Silverman, partner, PricewaterhouseCoopers, said in a statement.

Results show that advertisers feel the interactive channel is an effective vehicle for both direct response and brand advertising, as shown by the continued strength in search and rich media advertising.

Search revenue increased 27% for the first half of 2005, and at $2.3 billion comprised 40% of the online ad market. Rich media revenue increased 26%, and at $463 million makes up 8% of that market. Rich media is defined as advertisements that integrate some component of streaming video and/or audio and interactivity.

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