Online Ad Revenue Hits High

WASHINGTON – A sign that Internet advertising has finally eclipsed more traditional outlets struck home Monday with the release of a report from the Interactive Advertising Bureau and PricewaterhouseCoopers.

The Internet Advertising Revenue Report traces a significant decline in advertising dollars spent on newspapers, compared to the Internet, which the study claims experienced a 38 percent uptick in spending in the first quarter of this year, in addition to other ad dollars being redirected to mobile and digital media.

IAB’s report states that companies spent an estimated $3.9 billion on online ads at the beginning of this year, up more than $1 million from last year.

Other recent studies have uncovered similar findings, calling the Internet the “third largest channel for advertising.” Many analysts attribute the shift in ad dollar spending to a maturing Internet market that has finally proven itself as a worthy and effective vehicle for marketers, trumping click ads over display advertising.

The shift in spending also is being credited with cheaper ad rates because of the rising number of Internet users, and the crimp that the “Do Not Call” registry put on telemarketers.

"Companies are effectively learning to devote more of their advertising budget to this fast-growing advertising platform in order to reach the right audience at the right time," a spokesman for PricewaterhouseCoopers said.

The report predicts that if the ad momentum continues at its present pace, it will mark the fourth year in a row that online ad revenue has risen incrementally.

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