Online Advertising in USA

According to preliminary figures from the Interactive Advertising Bureau, Internet advertising in the USA for full-year 2002 totalled $5.95 billion. These top-line results are based on compiling data from the top 15 online ad sellers, which historically account for over 80% of total industry revenues. The results of this revenue compilation are then extrapolated to calculate the total industry revenue figure.

Internet advertising revenue in the U.S. totalled $1.5 billion for the fourth quarter of 2002, increasing over 2 percent from the third quarter, reflecting the first consecutive quarterly increase since the second quarter of 2000. While the $1.5 billion fourth-quarter reported figure decreased 9.8 percent from the same period a year earlier, it marks the first single-digit year-over-year percentage decrease since the first quarter of 2001. 'The improved online advertising environment reflects a confluence of factors The publishers are offering a more manageable, uniform and understandable business proposition than ever before. The creative side has gotten smarter and is delivering compelling, entertaining content, which will only improve as the installed base of high-speed access users increases. This adds up to a fertile environment for the industry to right and propel itself,' said Greg Stuart, president and CEO, Interactive Advertising Bureau.

'The improved performance over the past two quarters reflects a stabilizing online advertising market, highlighted by continued strength in paid-for-search results. The recent upturn, coupled with forecasts of continued expansion of broadband distribution, bodes well for a strong year in 2003' added Tom Hyland, Chair, PricewaterhouseCoopers New Media Group.

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 survey includes data concerning online advertising revenues from websites, commercial online services, free e-mail providers, and all other companies selling online advertising.

For further information, visit www.iab.net

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.