Online Ad Revenue Up 30% in 2005

NEW YORK — Online advertising set a record $12.5 billion in revenue in 2005, according to a survey by the Interactive Advertising Bureau. This was a 30 percent increase from $9.63 billion in 2004.

The survey includes data concerning online advertising revenues from websites, commercial online services, free email providers, and all other companies selling online advertising, IAB said.

Ads targeted to a specific search term remained the most profitable sector of the revenue stream, as search related ads led the field.

2005’s 4th quarter also set a record for Internet advertising with $3.6 billion in revenue, a 34 percent spike from the same quarter the previous year. Search ads accounted for 41 percent of the revenue stake.

“Interactive advertising continues to experience tremendous growth as marketers experience its overall effectiveness in building brands and delivering online and offline sales,” Greg Stuart, chief executive of the IAB said.

However, Internet advertising accounts for only 5 percent of the total money spent on ads in the U.S. according to PricewaterhouseCoopers in the same study. Stuart expects to see that percentage increase as advertisers and surfers take advantage of high-speed connections by widely using broadband video and online gaming.

Search related ad revenue was trailed in profitability by banner ads and classifieds the study said.

“The Internet continues to be a vibrant and ever-changing channel, providing advertisers with broad offerings that enable them to promote their brands using a highly cost effective platform,” David Silverman, a PricewaterhouseCoopers partner said. “This year’s record figure of annual internet advertising revenue demonstrates the enduring enthusiasm for the medium as a whole.”

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

Taylor Nicole Launches New Site Through YourPaysitePartner

Creator Taylor Nicole has launched her new official website through YourPaysitePartner (YPP).

Adult Networking Platform SpicyGigs.com Launches

SpicyGigs, a new adult industry networking platform, has officially launched.

Pineapple Support to Host 'Cream Pie Challenge' Fundraiser

Pineapple Support is hosting its Cream Pie Challenge through August to raise funds for mental health services for industry performers.

Kyrgyzstan President Signs Measure Outlawing Internet Porn

President Sadyr Japarov of Kyrgyzstan on Tuesday signed into law legislation outlawing online adult content in the country.

NC Legislature Overrides Veto of Extreme Anti-Adult Industry Bill

The North Carolina state legislature on Tuesday voted to override Gov. Josh Stein’s veto of a bill imposing regulations that industry observers have warned could push adult websites and platforms to ban most creators and content.

Report: VPN Downloads Soar in UK Following Age Verification Deadline

Virtual private network apps, which can be used to circumvent geo-specific age verification requirements, are topping Apple App Store downloads in the U.K. in the wake of new Online Safety Act rules, the BBC is reporting.

Strike 3 Holdings Sues Meta for Pirating Vixen Media Group Content to Train AI

Vixen Media Group owner Strike 3 Holdings filed suit in federal court this week, accusing Facebook parent company Meta of copyright infringement and alleging that Meta has extensively pirated VMG content to train its artificial intelligence models.

Pineapple Support, Streamate to Host 'Navigating Grief and Loss' Support Group

Pineapple Support and Streamate are hosting a free online support group to help performers cope with grief and loss.

Friday is Final AV Compliance Deadline in UK

Friday, July 25 marks U.K. media regulator Ofcom’s deadline for user-to-user services such as tube, cam and fan sites to implement its requisite “highly effective age assurance” measures for preventing minors from viewing adult content.

AEBN Publishes Popular Searches for May, June

AEBN has released the top search terms for the months of May and June from its straight and gay theaters in all 50 states and the District of Columbia.

Show More