Commentary

Just an Online Minute... Revenues Total $1.692 Billion

As the online ad industry workaholics are making plans to get away for a few days next week and catch the last of what's left of this summer (yours truly included,) we can all breathe a little easier knowing that unlike years past, this coming September actually holds something to look forward to.

If the momentum holds, that is. Granted their data is somewhat outdated, but today, the Interactive Advertising Bureau and PricewaterhouseCoopers announced that Internet advertising totaled $1.692 billion in the first three months of 2003, representing the first time in two years the industry has achieved two consecutive quarterly increases. Q1 2003 represents a 7% increase over Q4 2002 and an 11% increase over Q1 2002.

"The future for interactive advertising appears to be on strong footing and poised for gradual and sustained growth. Many of the factors contributing to last quarters up-tick seem to have held momentum, including improved data for advertisers to analyze as they have now been engaged in the market for a longer period of time," said Tom Hyland, Partner and Chair, New Media Group, PricewaterhouseCoopers.

"This consecutive quarter over quarter growth bodes well for the majority of IAB members," said Greg Stuart, President and CEO of the IAB. "Advertisers follow the timeless creed of go where your consumers are, and the interactive advertising market is no exception. Consumers are going online in droves and the ad dollars are following closely behind."

The first quarter online ad revenue figure was estimated by surveying and compiling 2003 first-quarter data from the top 15 online ad sellers. The results of this revenue compilation were then extrapolated to calculate the total industry revenue figure. The first quarter figure is an estimate, and actual first quarter results will be disclosed along with actual second quarter revenues in September 2003.

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