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2005 U.S. Internet Advertising Revenue

U.S. Internet advertising revenues for the first half of 2005 rose 26 percent over the same period last year, to a record $5.8 billion, according to a report from PricewaterhouseCoopers conducted for the New York-based Internet Advertising Bureau (IAB).

Search advertising spending grew 27 percent over 2004 to $2.3 billion, while remaining steady at 40 percent of the overall Internet ad market. Behind search ads were banner ads, which accounted for 20 percent of Internet ad revenue, and classified listings (18 percent). Along with search, another fast-growing segment was rich media streaming audio and video ads, which grew 26 percent in revenue over last year, but also maintained their 8 percent overall market share.

"The consistent growth in overall revenues shows marketers may be shifting more of their total advertising budgets to online," said PricewaterhouseCoopers partner David Silverman. "This is a natural development as research shows more consumers are spending a larger percentage of their media time online, while the flow of advertising dollars follows."

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