Thursday, February 12, 2004
Interactive Ad Revenue Sets Record With Best Quarter Ever

$2.2 BILLION Q4 2003 IS 38% OVER Q4 2002

Interactive Continues To Show Dynamic Strength Leading All Other Ad Segments
New York, NY (February 12, 2004) Recording the highest quarterly revenue growth since the IAB and PricewaterhouseCoopers began tracking interactive ad revenue in 1996, the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) today announced that online advertising revenue in the United States for Q4 2003 totaled an estimated $2.2 billion, with revenues for the year 2003 are estimated at $7.2 billion. The year-to-year for the fourth quarter and year 2003 were 38% and 20% respectively. The previous record quarter for interactive advertising was Q4 2000 that saw $2.12 billion in revenue.

“I’m not at all surprised at these revenue numbers,” said Greg Stuart, President & CEO of the Interactive Advertising Bureau. “Our medium is such that we should expect this positive performance. Based on sound business principles the industry has grown up and become a great competitive advantage for those marketers who have been paying attention. Not exactly a secret weapon any longer, our medium continues to lead where others have fallen off, and smart marketers know it, and are shifting dollars and gaining share.”

According to Universal McCann’s December 2003 estimates, the Internet lead all other advertising segments in percentage revenue growth for the year. The IAB sponsors the Internet Ad Revenue Report, which is conducted independently by PwC.

“The online medium continues to demonstrate its vitality in any number of ways,” noted Tom Hyland, Partner and Chair, New Media Group, PricewaterhouseCoopers. “The consistent revenue growth signals, in part the increased adoption of broadband. Combined with the evolution of emerging ad formats including Search the growing health of the online medium and its proven advertising effectiveness bode well for sustainable revenue growth.”
The 2003 fourth quarter and full year online ad revenue figures are estimates based on compiling and aggregating data from the top 15 online ad sellers. The results were then extrapolated to calculate the total estimated industry revenue figure. The final full report covering 2003 Q4 and full-year data with breakout details is scheduled to be released in early April of 2004.

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 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, 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 fourth quarter data respectively.

About PwC :


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 85% 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 150 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.

Stu Ginsburg
FAVA PR
(917) 554-0724 - mobile
[email protected]