Q1 Internet-Advertising Revenue Tops $2.8 Billion

The spending spree marks the highest growth in nine consecutive quarters.
Marketers spent more than $2.8 billion on Internet advertising in the first quarter, making the three-month period the highest in nine consecutive growth quarters, the Interactive Advertising Bureau said Monday.

Revenues in the quarter were 26 percent higher than the same period last year, and 4.3 percent more than the fourth quarter of 2004, the trade group said. The numbers were compiled by consulting firm PricewaterhouseCoopers.

"The continued and steady growth we have experienced over the past 2 years is a clear indication that this medium delivers results and is fast becoming accepted as part of the mainstream," Greg Stuart, president and chief executive of the New York-based IAB, said in a joint statement with PWC.

Contributing to the revenue rise is the broadening and growth of online usage among consumers, Tom Hyland, a PWC partner and chair of its New Media Group, said. In addition, rising broadband use in homes have made it possible for advertisers to use rich-media applications to strengthen their sales pitches.

"The economics are too compelling for marketers to ignore," Hyland said.

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