Language Selection

English French German Italian Portuguese Spanish

Ad Rev Surpasses Dotcom Boom Levels

Filed under
Web

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.

The data also underscores breakaway earnings results for major Internet media companies and search engines like Yahoo Inc. and Google Inc., as well as the digital divisions of traditional media companies like the New York Times Co.

"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.

The IAB said that Internet ad revenue of $9.6 billion in 2004 compared with ad revenue in 2003 of $7.27 billion and exceeded the previous revenue record of 2000 by nearly 20 percent. Fourth-quarter revenue grew to $2.69 billion, the highest level for a three-month period. The data was compiled by the IAB and PricewaterhouseCoopers.

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.

"The reported results from Yahoo and Google showed I was being too conservative" with regard to the Web search advertising those companies have popularized, said eMarketer senior analyst David Hallerman.

He said eMarketer's new 2005 forecast assumes revenue from Web search advertising, also known as paid search, to grow 40 percent year-on-year to $5.4 billion. His previous forecast had been $4.7 billion.

Industry experts say the growth of high-speed Internet in the United States, now estimated to be used by over 50 percent of homes connected to the Web, will further boost the medium in years to come as marketers can deliver more sophisticated video or pay-per-view content.

By category, paid search listing revenue jumped 40 percent to $3.9 billion, display advertising such as banners rose 19 percent to $1.8 billion and rich media such as video ads grew 10 percent to just under $1 billion, according to the IAB.

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.

Source.

More in Tux Machines

Ubuntu's answer to Android is finally here, but it still needs work

At long last, the first Ubuntu phones are here. It's been more than two years since Canonical first showed off its Linux-based mobile platform, and fans have been clamoring for consumer devices ever since. The Ubuntu Edge never made its ambitious $32 million crowdfunding target, and the first handsets from BQ and Meizu were delayed last year. But finally, it's all starting to come together. BQ has started selling its "Aquaris E4.5 Ubuntu Edition" in Europe and Meizu shouldn't be too far behind with its modified MX4. Read more

Red Hat Enterprise Linux 7.1 Officially Released with Support for Linux Containers

Red Hat was proud to announce earlier today, March 5, the availability of the first maintenance release of its Red Hat Enterprise Linux 7 operating system for computers, used in numerous enterprises worldwide. Red Hat Enterprise Linux 7.1 contains a great amount of bug fixes and improvements over the previous release, as well as various new features. Read more Also: iSER target should work fine in RHEL 7.1

Help: Linux to the rescue of older operating systems

As you know, when someone offers free stuff, we give it a few weeks in order to give each group, organization or individual in need a chance to respond. That’s what we’ll do with Mary Greenfield’s generous offer to donate free fabric, so give it another week and then we’ll forward responses to her. One of the most rewarding aspects of writing this column is realizing that it generates discussion, and here’s a response to that question about updates for an older computer running Windows ME... Read more

Open source used to manage Figueres’ environment

The Spanish town of Figueres is relying on free and open source software to help manage its urban and natural environment. Fisersa Ecoserveis, an environmental company, is using a range of open source solutions to create, update and manage interactive geographic maps, used for monitoring and planning the city’s green spaces. Read more