US internet advertising profits rose by 33 per cent in 2004 to a record $9.6 billion.
The Interactive Advertising Bureau and PriceWaterhouseCoopers found that online advertising spend surpassed levels seen during the early web boom, soaring to more than $9.6 billion over the year. The IAB predicts that advertising profits will grow at a similar rate in 2005.
Advertisers have indicated in recent months that they are starting to move more of their marketing budgets online. Quarter four 2004 revenues totalled a record $2.69 billion, making it the highest quarter ever reported.
The report states that search, classifieds, display and rich media continue to grow at a healthy rate. Consumer advertisers continue to represent the largest category of advertisers accounting for 49 per cent of the 2004 annual revenues, while the largest sub-categories under the consumer umbrella include retail, automotive, leisure, entertainment and packaged goods.
