More NewsIAB: Ad Revenues Up 38 Percent in Q4

IAB: Ad Revenues Up 38 Percent in Q4

Yet another piece of good news for interactive advertising surfaces as revenue soars, according to estimates.

Internet ad revenue in the fourth quarter of 2003 hit $2.2 billion, a record-breaking 38 percent increase over the fourth quarter of 2002, according to estimates from PricewaterhouseCoopers (PwC).

The dramatic rise reflects the highest quarterly growth since PwC began tracking the numbers in tandem with the Interactive Advertising Bureau (IAB) in 1996. Revenues for the year were estimated at $7.2 billion, growing 20 percent over revenues for 2002, according to the report.

The previous record quarter for interactive advertising was the fourth quarter of 2000, with $2.12 billion in revenue, the IAB said. If the estimate bears out, the results would also mark the fifth consecutive quarter in which revenues have increased, based on the previous quarter’s report.

PwC estimated the fourth quarter and full year online ad revenue figures by compiling and aggregating 2003 Q4 data from the top 15 online ad sellers. Results were then extrapolated to calculate the total estimated industry revenue figure. The final full report on the fourth quarter of 2003 and full-year data will be released in April 2004, along with breakout details.

Citing “consistent revenue growth,” Tom Hyland, partner and chair of PwC’s New Media Group, said the online medium continues to demonstrate its vitality in a number of ways. “The growing health of the online medium and its proven advertising effectiveness bode well for sustainable revenue growth.”

The revenue increase reinforces other good news for the online sector, including UK interactive ad growth outdoing all other forms of advertising. The lion’s share of online advertising companies have reported turning profits in the fourth quarter of 2003, suggesting that rumors of recovery are far from premature.

The “Advertising Revenue Report,” launched by the IAB in 1996, incorporates data from all companies reporting “meaningful” online ad revenues. Types of companies surveyed include Web sites, commercial online services, free email providers and other selling online advertising.

Related Articles

GDPR: The role of technology in data compliance

Data & Analytics GDPR: The role of technology in data compliance

3w Clark Boyd
What companies can learn from the We-Vibe lawsuit about the Internet of Things

Legal & Regulatory What companies can learn from the We-Vibe lawsuit about the Internet of Things

8m Al Roberts
Has advertising arrived on Google Home?

Media Has advertising arrived on Google Home?

8m Al Roberts
Is Twitter slowly dying?

More News Is Twitter slowly dying?

9m Al Roberts
FedEx launches fulfillment service to take on Amazon

Ecommerce FedEx launches fulfillment service to take on Amazon

9m Al Roberts
Target is the top retail digital marketer, so why is it struggling?

Ecommerce Target is the top retail digital marketer, so why is it struggling?

8m Al Roberts
YouTube is "on pace to eclipse TV" thanks to savvy algorithm use

More News YouTube is "on pace to eclipse TV" thanks to savvy algorithm use

9m Al Roberts
YouTube is getting rid of 30-second unskippable pre-roll ads

Ad Industry Metrics YouTube is getting rid of 30-second unskippable pre-roll ads

9m Al Roberts