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.”
