Figures for the last quarter of 2004 show revenues totalling a
record $2.69 billion, marking the highest quarter ever reported,
according to the Internet Advertising Revenue Report.
Despite this, on-line advertising revenue accounted for only
around 3.7% of the total ad-spend in the
US
in 2004,
up slightly from 3% in 2003.
The bulk of the revenue is concentrated in the top 10 on-line
ad sellers, who were responsible for 71% of the total revenue
earned in the last quarter of 2004. Advertising that targeted
national or non-local audiences accounted for 94% of 2004 fourth
quarter revenues, says the report.
The report shows that consumer advertisers continued to
represent the largest category of advertisers, accounting for 49%
of the 2004 annual revenues, up significantly from the 37% reported
for the same period in 2003. The largest sub-categories under the
consumer umbrella include retail, automotive, leisure,
entertainment and packaged goods.
The top ad format was search-based, accounting for 40% of the
market, with classifieds, display and rich media continuing to grow
at a healthy rate, says the report.
With regard to pricing models, impression-based pricing was
still the top choice for buyers and sellers, accounting for 42% of
revenues, but performance-based deals grew to 41%, up from 37% in
2003.
"Interactive Advertising has clearly become a mainstream
medium and one that can no longer be ignored as a critical piece of
any marketing mix," said Greg Stuart, president and
CEO
of the
IAB
.
