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Web advertising up 34 percent

Posted by inet - 2005-11-22

Spending on Internet advertising rose 34 percent in the third quarter to $3.1 billion from a year earlier, setting a quarterly record and bolstering expectations that the market could exceed $12 billion this year, according to data released on Monday.
The quarterly report issued by the Interactive Advertising Bureau trade group and PricewaterhouseCoopers said online advertising revenue was up nearly 5 percent from the second quarter.

"The third-quarter figures are the most impressive we've seen yet," said David Silverman, a partner at PricewaterhouseCoopers. "Clearly advertisers are realizing the benefits of shifting more of their total advertising budgets to online."

Advertisers are spending more on Internet campaigns as consumers devote a growing amount of time to the Web and online publishers provide more sophisticated tools for serving up and tracking ads.

The move has drawn marketing dollars away from more traditional media outlets, such as network television and newspapers.

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