Wednesday, June 6, 2007
Internet Advertising Revenues Soar Again, Near $5 Billion in Q1 07

Industry Continues to Set New Records; Revenues Up 26% from Same Period Last Year

New York, NY (June 6, 2007) – The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC) today announced that Internet advertising revenues reached a new record of $4.9 billion for the first quarter of 2007. The 2007 first quarter revenues represent a 26 percent increase over Q1 2006 at $3.8 billion and a 2 percent increase over Q4 2006 at $4.8 billion.

"The continued growth of online ad revenues clearly illustrates marketers' increased comfort with the extraordinary vitality and accountability of this medium," said IAB President and CEO Randall Rothenberg. "It reaches consumers with an unprecedented level of efficiency and measurability that provides marketers with actionable data. And the ever-changing landscape of new platforms and technologies that enrich interactive advertising guarantees that this growth trend will continue."

"The recent results are particularly impressive when the size of the advertising revenue base is taken into account," said Peter Petrusky, director, PricewaterhouseCoopers. "Given these results, we may expect continued strong revenue growth buoyed by an expanding broadband subscriber base, which could translate into more users spending more time online and offers a platform for rich media and video ads that dial-up connections cant render."

"The continued growth of internet advertising, on top of the record growth of 2006 and despite advertising's traditional sluggish first quarter, demonstrates the growing significance of interactive advertising to the overall advertising and marketing industry," added David Silverman, partner, Assurance, PricewaterhouseCoopers.

Source: PwC/IAB Internet Advertising Revenue Report (www.iab.net)

Conducted by the New Media Group of PricewaterhouseCoopers, the "IAB Internet 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 considered 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. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information.

The IAB sponsors the IAB Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PricewaterhouseCoopers. The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first and third quarters.

About PricewaterhouseCoopers:
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 140,000 people in 149 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.

"PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

About the IAB:

Founded in 1996, the Interactive Advertising Bureau (www.iab.net) represents over 300 leading interactive companies that actively engage 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 about interactive advertising.

For any questions about IAB news please contact:

Marla Nitke
212.380.4714
[email protected]

PricewaterhouseCoopers Media Contact:
Kathyrn Oliver
860.241.7333
[email protected]

Or

Linden Alschuler & Kaplan for PricewaterhouseCoopers:
"Suzanne Dawson
212.329.1420
[email protected]