Revenues Total $1.745 Billion
New York, NY (December 9, 2003) Today, the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) announced that Internet advertising totaled an estimated $1.745 billion in the third quarter of 2003 – the highest total revenues reported since Q3 2001 ($1.773 billion). Q3 2003 represents a 20% increase over Q3 2002 ($1.451 billion) and a 5% increase over Q2 2003. The IAB sponsors the Internet Ad Revenue Report, which is conducted independently by PwC.
The third quarter online ad revenue figure was estimated by surveying and aggregating 2003 third quarter data from the top 15 online ad sellers. The results were then extrapolated to calculate the total estimated industry revenue figure. Actual third quarter results will be reported along with actual fourth quarter revenues in early 2004.
A 20% year over year growth increase speaks for itself. Clearly, the Internet is proving itself a fertile marketplace attracting advertisers and marketers across the board,” said Greg Stuart, President and CEO, Interactive Advertising Bureau.
We believe the fundamentals of interactive advertising will further drive industry revenues higher. The 5% quarter over quarter growth further demonstrates that the basic foundations of interactive advertising are built on a solid business model,” said Tom Hyland, Partner and Chair, New Media Group, PricewaterhouseCoopers.
Conducted by the New Media Group of PricewaterhouseCoopers the “Advertising Revenue Report” was started by the IAB in 1996, and represents data from all companies that report meaningful online advertising revenues. The results are the most accurate measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertising on the Internet. The survey includes data concerning online advertising revenues from Web sites, commercial online services, free e-mail providers, and all other companies selling online advertising. First and third quarter revenue reports are estimates, with the actual figures being released along with second and fourth quarter data respectively.
PricewaterhouseCoopers (www.pwcglobal.com), the world’s largest professional services organization, helps its clients build value, manage risk and improve their performance. The PricewaterhouseCoopers New Media Group — with offices in New York, Los Angeles, Seattle, San Francisco Bay Area, and Boston — combines content and technology specialists to provide comprehensive service to dynamic entrepreneurial companies. Services include business assurance services, ad delivery and privacy attestation and consultation, assistance with mergers and acquisitions, tax planning and compliance, capital structuring and employee benefits and executive compensation packages.
About the IAB
Founded in 1996, the Interactive Advertising Bureau (IAB) represents the leading companies in the interactive space. Membership includes companies that are actively engaged in, and support the sale of interactive advertising in addition to being responsible for selling over 75% of online advertising in the United States . IAB members include AOL, CNET Networks, DoubleClick, MSN, Google, Overture, The Walt Disney Internet Group, Yahoo! and over 150 others. 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 on the IAB please visit www.iab.net.