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IAB/PWC Release Third Quarter 2005 Internet Ad Revenue Figures

Internet Advertising Revenues Surpass $3 Billion for Q3
Run Rate for Full Year 2005 on Pace to Exceed $12 Billion

New York, NY (November 21, 2005) The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) today announced that Internet advertising revenues totaled a record $3.1 billion for the third quarter of 2005, making this the highest quarter reported and the first time that quarterly revenues surpassed $3 billion. The 2005 third-quarter revenues represent a 33.9 percent increase over 2004 third-quarter total of $2.3 billion and a 4.7percent increase over the 2005 second-quarter total of $2.9 billion. Based on historical data, the annual revenue run rate for 2005 could exceed $12 billion, well above last years record total of $9.6 billion.

More and more marketers have embraced Interactive as an essential medium to reach and engage their consumers in more immersive brand experiences, said Greg Stuart, President and CEO, IAB. Moreover, Interactive advertising continues to prove itself as the most cost effective medium in driving sales and changing consumer attitudes providing a powerful competitive edge for these marketers.

“The continued strength in Internet advertising reflects in part the medium’s unique ability to collapse the business cycle for advertising, marketing and branding, making it more attractive for traditional advertisers,” said Pete Petrusky, Director, Advisory Services, PricewaterhouseCoopers. “The high percentage growth in revenues is more significant given the larger revenue base.”

David Silverman, Partner, Assurance Services, PricewaterhouseCoopers, adds, The third quarter figures are the most impressive weve seen yet. Clearly advertisers are realizing the benefits of shifting more of their total advertising budgets to online it is an exciting prospect that the annual run rate may exceed $12 billion.

The IAB sponsors the Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PricewaterhouseCoopers. The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first and third quarters.

About PricewaterhouseCoopers:

PricewaterhouseCoopers ( provides industry-focused assurance, tax and advisory services for public and private clients. More than 120,000 people in 144 countries connect their thinking, experience and solutions to build public trust and enhance value for clients and their stakeholders.

Unless otherwise indicated, “PricewaterhouseCoopers” refers to PricewaterhouseCoopers LLP, a Delaware limited liability partnership. PricewaterhouseCoopers LLP is a member firm of PricewaterhouseCoopers International Limited.

About the IAB:

Founded in 1996, the Interactive Advertising Bureau (IAB) represents over 200 leading interactive companies that actively engage in, and support the sale of interactive advertising. IAB members are responsible for selling over 86% of online advertising in the United States. On behalf of its members, the IAB evaluates and recommends standards and practices, fields interactive effectiveness research and educates the advertising industry regarding the use of interactive advertising. For more information, please visit