Online Ad Spending Spree

NEW YORK, NY -- While offline retailers are complaining that the holiday season got off to a disappointing start, web publishers have plenty of reason to be hopeful as advertisers pull out of a year-long slump.

Recent news from the Interactive Advertising Bureau (IAB) and the Online Publishers Association states that in addition to increasing broadband adoption rates, advertisers are starting to spend more and more of their dollars online.

There is even a projection from Forester Research that online sales this holiday will ring in upwards of $12 billion.

Research firms are attributing this boost in advertising revenue to the turnaround in the economy and the fact that advertisers are realizing how much revenue potential the web promises, in addition to the broad variety of online advertising vehicles that can be used to target consumers.

"Our prognosis for a continued and steady recovery is being realized and the outlook remains bright," said Greg Stuart, president and CEO of IAB. "With Internet usage and broadband adoption continuing to escalate, marketers are throwing their weight and dollars behind interactive advertising."

A recent report published by the IAB and PricewaterhouseCoopers found that Internet advertising in the United States in 2003 totaled nearly $3.3 billion, up more than 10 percent from the first half of last year.

The Online Publishers Association released recent information that third quarter ad revenue for web publishers grew an average of 46 percent over the same time last year.

According to Wired, most notable advertising activity can be seen on news and content sites. Research began tracking an uptick in the first part of this year, but not until now have advertisers felt so inspired to spend top dollars on a wide variety of online promotions.

The growth upsurge was evident in the second quarter of this year, which totaled $1.66 billion in revenue, a 14 percent increase over the same period in 2002.

According to Wired, there is even speculation that online publishers are starting to dominate the advertising space over traditional, offline advertising vehicles like print or television. Increasingly, states Wired, advertisers are willing to invest in rich media options, including paid search advertising options.

"Advertisers operate within an increasingly complex landscape, however, there is no denying that consumer Internet media usage continues to rise," said Tom Hyland of PricewaterhouseCoopers. "The Internet holds the promise of delivering the right audience at the right time - a winning combination for marketers of any type, and thus we should continue to see a favorable environment for increased Internet ad spending."

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Texas Resumes AV Lawsuit Against Aylo Following SCOTUS Decision

A district court judge in Texas has unfrozen the state’s $1.6 million lawsuit against Aylo for allegedly failing to comply with age verification requirements, Bloomberg Law is reporting.

JuicyAds Wins Trademark Infringement Case Against Fraudulent Domain

JuicyAds has won its World Intellectual Property Organization (WIPO) case against a website using a similar domain to impersonate the company's site and defraud customers.

Anissa Kate, Jordan Starr Top AEBN for Q2 of 2025

AEBN has published its top-selling stars for the second quarter of 2025, with Anissa Kate landing atop the leaderboard for straight theaters and Jordan Starr heading up the gay rankings.

AEBN Reveals Eva Maxim as Top Trans Star for Q2 of 2025

AEBN has published its top trans stars list for the second quarter of 2025, with Eva Maxim landing atop the leaderboard.

France Reinstates Age Verification Rule for EU Sites

France’s highest court, the Council of State, on Tuesday reinstated age verification rules for EU-based sites under the country’s Security and Regulation of the Digital Space (SREN) law, ruling in favor of the French government and against Hammy Media.

Whisper Fans Joins Pineapple Support as Supporter-Level Sponsor

Whisper Fans has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Utherverse Launches 'Red Light Center' Virtual World

Virtual reality and metaverse technology company Utherverse has launched its new virtual world, RedLightCenter.io.

European Commission Approves AV Guidelines, Unveils Prototype App

The European Commission on Monday released its final, approved guidelines for protecting minors online under the EU’s Digital Services Act (DSA) and made public a “white label” age verification app intended to help sites and platforms comply with age verification rules under the DSA.

Show More