Monday, November 15, 2004
Q3 2004 Interactive Advertising Revenues Total Over $2.4 Billion Fourth Record-Setting Quarter

NEW YORK, NY (November 15, 2004) Today, the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) announced that Internet advertising totaled approximately $2.43 billion in the third quarter of 2004 - the eighth consecutive quarterly increase for the industry and the fourth record-setting quarter. Q3 2004 represents a 35.3% increase over Q3 2003 ($1.79 billion) and a 2.4% increase over Q2 2004 ($2.37 billion.) The IAB sponsors the Internet Ad Revenue Report, which is conducted independently by PwC.

The third-quarter online ad revenue figure was estimated by surveying and aggregating 2004 third-quarter data from the top 15 online ad sellers. The results were then extrapolated to calculate the total estimated industry revenue figure. Actual third quarter results will be reported along with actual fourth quarter revenues in the full Internet Advertising Revenue Report, expected in Spring 2005.

“Historically, the second and fourth quarters are the strongest in advertising,” said Greg Stuart, president and CEO, IAB. “That the industry bested 2Q revenues is testament to the confidence and success marketers have found in the medium. As the experts predict, the Holiday season should be a merry one for the industry.”

“Single digit, sequential growth demonstrates the industry has left behind the large revenue spikes that characterized the early years. We’re now looking at a maturing, stable industry that inspires further investment by large, traditional marketers,” said Tom Hyland, Partner and Chair, New Media Group, PricewaterhouseCoopers.

“Revenue results for the first nine months of 2004 totaled slightly over $7.0 billion versus the $7.3 billion reported for all of 2003. Based on historical revenue results, 2004 is shaping up to be a record year, possibly exceeding by a large margin the previous revenue record reported in 2000 of $8.0 billion,” said Pete Petrusky, Director, Advisory Services, PricewaterhouseCoopers.

About the Internet Advertising Revenue Report
Conducted by the New Media Group of PricewaterhouseCoopers LLP, 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 interactive 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, e-mail providers, and all other companies selling online advertising. The full report is issued twice yearly at the full and half year, and top-line quarterly estimates are issued for the first and third quarters

About PwC
PricewaterhouseCoopers LLP (www.pwc.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, governance, risk and compliance, capital structuring and employee benefits and executive compensation packages.

About IAB
Founded in 1996, the Interactive Advertising Bureau (IAB) represents leading interactive companies that are actively engaged in, and support the sale of interactive advertising. IAB members are responsible for selling over 86% of online advertising in the United States. 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 please visit www.iab.net.

Contact: Emily Kutner- IAB
212-949-2432
[email protected]

Contact: Suzanne Dawson - PwC
212-329-1420