Wednesday, August 20, 2003
IAB ANNOUNCES SECOND CONSECUTIVE QUARTERLY

INCREASE IN INTERNET AD REVENUES FOR Q1 2003
Revenues Total $1.692 Billion

New York, NY (August 20, 2003)Today, the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) announced that Internet advertising totaled $1.692 billion in the first three months of 2003, representing the first time in two years the industry has achieved two consecutive quarterly increases. Q1 2003 represents a 7% increase over Q4 2002 and an 11% increase over Q1 2002. The IAB sponsors the Internet Ad Revenue Report which is conducted independently by (PwC).

The first quarter online ad revenue figure was estimated by surveying and compiling 2003 first-quarter data from the top 15 online ad sellers. The results of this revenue compilation were then extrapolated to calculate the total industry revenue figure. The first quarter figure is an estimate, and actual first quarter results will be disclosed along with actual second quarter revenues in September 2003.

“This consecutive quarter over quarter growth bodes well for the majority of IAB members. Advertisers follow the timeless creed of go where your consumers are, and the interactive advertising market is no exception. Consumers are going online in droves and the ad dollars are following closely behind,” said Greg Stuart, President and CEO, Interactive Advertising Bureau.

“The future for interactive advertising appears to be on strong footing and poised for gradual and sustained growth. Many of the factors contributing to last quarters up-tick seem to have held momentum, including improved data for advertisers to analyze as they have now been engaged in the market for a longer period of time,” said Tom Hyland, Partner and Chair, New Media Group, PricewaterhouseCoopers.

Conducted by the New Media Group of PricewaterhouseCoopers the "Advertising Revenue Report" was started by the IAB in 1996, and represents data from all companies that report meaningful online advertising revenues. The results are the most accurate measurement of online advertising revenues because the data is compiled directly from information supplied by companies selling advertising on the Internet. The survey includes data concerning online advertising revenues from Web sites, commercial online services, free e-mail providers, and all other companies selling online advertising. First and third quarter revenue reports are estimates, with the actual figures being released along with second and forth quarter data.

AboutPwC
PricewaterhouseCoopers (www.pwcglobal.com), the world's largest professional services organization, helps its clients build value, manage risk and improve their performance. The PricewaterhouseCoopers New Media Group -- with offices in New York, Los Angeles, Seattle, San Francisco Bay Area, and Boston -- combines content and technology specialists to provide comprehensive service to dynamic entrepreneurial companies. Services include business assurance services, ad delivery and privacy attestation and consultation, assistance with mergers and acquisitions, tax planning and compliance, capital structuring and employee benefits and executive compensation packages.

About the IAB
Founded in 1996, the Interactive Advertising Bureau (IAB) represents the leading companies in the interactive space. Membership includes companies that are actively engaged in, and support the sale of interactive advertising in addition to being responsible for selling over 75% of online advertising in the United States. IAB members include AOL, CNET Networks, DoubleClick, MSN, Google, Overture, The Walt Disney Internet Group, Yahoo! and over 100 others. On behalf of its members, the IAB evaluates and recommends standards and practices, fields interactive effectiveness research and educates the advertising industry regarding the use of interactive advertising. For more information on the IAB please visit www.iab.net.


Contact:

Emily Kutner – IAB
212-949-9030 x209
[email protected]