Online advertising revenue in the United States has surged by 38%, reaching a record high of $3.9 billion in the first quarter of 2006 as businesses increasingly favor the web.
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| Source: Infotech |
A survey conducted by the Interactive Advertising Bureau and PricewaterhouseCoopers targeted websites with the most sought-after advertising space, such as Yahoo and Google.
As users spend more time engaging in entertainment and shopping online, advertisers are increasingly generous in investing in this new form of advertising.
“We are on the verge of creating a true internet advertising space,” said David Silverman, an expert from PricewaterhouseCoopers. “More and more advertisers are recognizing the effectiveness and potential of this space.”
Although online advertising has only been around for a little over a decade, it has achieved remarkable growth. From less than $1 billion in 1997, it has now evolved into a massive industry with revenues of $12.5 billion last year.
A notable point is that revenue in the first quarter of this year increased a record 38% compared to the same period last year, and was 4% higher than in the fourth quarter of 2005. This is rare, as the end of the year is typically the peak advertising season due to the holiday shopping rush.
“The fact that first-quarter revenue has surpassed that of last year’s fourth quarter is a clear indication that internet advertising is on the rise. Nothing can stop its momentum,” Silverman predicted.
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