Online Ad Revenue Skyrockets

    September 27, 2005
    WebProNews Staff

A 26 percent increase for the first half of 2005 saw revenue for online advertising hit $5.8 billion dollars.

MSN and have been working hard to build their in-house advertising networks. The pot at the end of the advertising rainbow contains a lot more gold than it did during the same period in 2004, as MediaPost reports.

Google and Yahoo benefited from the search advertising spending. MediaPost cites the Interactive Advertising Bureau in noting paid-search ads accounted for 40 percent of that $5.8 billion. Display ads, where United Online has been the biggest month to month spender, accounted for 20 percent.

Spending in referrals and lead generation, such as that done by affiliate programs like eBay’s, hit $347 million. That figure is more than triple what was spent in 2004. Rich media ads increased to $463 million, as more advertisers take advantage of greater broadband penetration and produce video and interactive ads.

Two categories, classifieds and display ads, each topped $1 billion in spending. Classifieds online have become a revenue stream for print media as circulations of newspapers and magazines decline. CNNMoney will have four financial magazines consolidated online under its banner as it seeks to funnel more visitors to view its Web display advertising.

David Utter is a staff writer for WebProNews covering technology and business. Email him here.