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2004 Internet Ad Rev Surpasses Dotcom Boom Levels

U.S. Internet advertising surged 33 percent in 2004 to a record $9.6 billion, surpassing levels seen during the early Web boom, and will grow at a similar rate in 2005, according to data released on Thursday.

The figures bolster reports from individual advertisers who say they are moving more of their marketing budgets online as consumers devote more time to the Internet and fewer hours to television and other media.

Interactive advertising has clearly become a mainstream medium and one that can no longer be ignored," said Greg Stuart, president of the Interactive Advertising Bureau (IAB).

Looking ahead, research firm eMarketer predicted online ad growth of 33.7 percent in 2005 to $12.7 billion, raising a previous estimate of $11.5 billion for the year. eMarketer had estimated 2004 ad revenue at $9.5 billion.

Online classified ads grew 18 percent to $1.7 billion, representing a growing challenge to traditional newspaper classifieds.

Consumer goods companies accounted for nearly half of all online ad spending in 2004, while financial services firms made up 17 percent of the total revenue.

see also: reuters

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