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Internet ad revenues in U.S. top $3 billion in year’s third quarter

November 22, 2010

Online advertising represents a mere fraction of the total U.S. ad market; it is a business with an estimated worth of $71 billion for the first half of 2005. But revenues for online advertising reached a record $3.1 billion from July through September this year, according to the Interactive Advertising Bureau.

 

That represents a rise of 34 percent from the same period in 2004. The IAB predicts that Internet ad revenues may exceed $12 billion for all of 2005. Last year, revenues ended the year at $9.6 billion. 

"Clearly, advertisers are realizing the benefits of shifting more of their total advertising budgets to online," said David Silverman, a partner at PricewaterhouseCoopers, the company that compiled the data used by the IAB.

 

The IAB did not offer a breakdown of contributing factors for the rise in ad revenues, but it is likely that ads capable of being searched by keywords played a factor in the growth.

 

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