IAB Releases Ad Revenue Report

The Interactive Advertising Bureau (IAB) released its Internet Ad Revenue Report — conducted independently by the New Media Group of PriceWaterhouseCoopers — on Monday. The report found that Internet advertising in the United States had revenues of $2.2 billion for Q4 2000, bringing total online revenue for the year to $8.2 billion.

Although the Q4 numbers show only a 9 percent increase over Q3 revenues, Pete Petrusky, director of new media at PriceWaterhouseCoopers, said he didn’t expect the quarterly revenue to double, as it had over the past year-and-a-half. “I think what we have is still a fairly strong number,” Petrusky said. “We have a medium here that offers a lot of advantages and can be used as a complement to other advertising. And, more people are continuing to go online.”

“What this pre-stages for 2001 is a more sustainable revenue base — with a lot of the dot-coms out and more traditional advertisers coming online,” Petrusky added.

The report also found that the categories leading in online spending during the fourth quarter 2000 were: consumer-related, 32 percent; computing, 21 percent; financial services, 13 percent; business services, 6 percent; and media, 9 percent.