Online ad spending booms to record USD12.5bn

21-04-2006

by Silicon.com

The amount of money spent on internet advertising in the US rose by 30 percent last year to a record USD12.5 billion.

That's according to a report released on Thursday by advertising trade group the Interactive Advertising Bureau and independent auditor PricewaterhouseCoopers.

Keyword search ads led the sector, representing 41 percent market share and USD5.1 billion in revenue, followed by total display advertising, with 34 percent market share and USD4.3 billion in revenue, and classified advertising with 17 percent market share and USD2.1 billion in revenue.

Display advertising includes subgroups of display, sponsorship, slotting fees and rich media.

Nearly half (46 percent) of the ad deals were cost-per-thousand impressions, which include display and banner ads, followed by performance deals, which include cost-per-click and cost-per-transaction, which accounted for 41 percent of the online-advertising contracts.

In the fourth quarter of 2005, internet advertising revenue totalled USD3.6 billion, up 34 percent from the year-earlier period.

Elinor Mills writes for CNET News.com.

Reprinted with permission from Silicon.com