NEW YORK The online advertising sector achieved its biggest moneymaking quarter in two years in Q3, as revenue reached an estimated $1.745 billion, according to figures released today.
The Q3 estimate represents the highest Internet ad revenue reported since Q3 2001 ($1.773 billion). It also marks the industry's fourth consecutive quarter of growth, as online ad spending rose 5 percent from the second quarter and 20 percent from the year-ago period.
The Interactive Advertising Bureau and PricewaterhouseCoopers surveyed, aggregated and extrapolated data from the top 15 online ad sellers to calculate the estimated industry figure for the third quarter. Actual Q3 results will be reported with the fourth-quarter revenue in early 2004.
Factors contributing to the sector's rebound include increased broadband adoption, a boost in buy-side demand, firming prices, an improved selling process, more performance deals, fewer non-cash deals and continued investment from consumer advertisers, Pete Petrusky, director of new media at PwC, said last month [IQ Daily Briefing, Nov. 11].