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Record 2005 Internet Advertising Revenue

The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) announced that Internet advertising revenues totaled a record $3.1 billion for the third quarter of 2005, making this the highest quarter reported and the first time that quarterly revenues surpassed $3 billion.

The 2005 third-quarter revenues represent a 33.9 percent increase over 2004 third-quarter total of $2.3 billion and a 4.7 percent increase over the 2005 second-quarter total of $2.9 billion. Based on historical data, the annual revenue run rate for 2005 could exceed $12 billion, well above last year�s record total of $9.6 billion.

�More and more marketers have embraced Interactive as an essential medium to reach and engage their consumers in more immersive brand experiences,� said Greg Stuart, President and CEO, IAB. �Moreover, Interactive advertising continues to prove itself as the most cost effective medium in driving sales and changing consumer attitudes providing a powerful competitive edge for these marketers.�

"The continued strength in Internet advertising reflects in part the medium's unique ability to collapse the business cycle for advertising, marketing and branding, making it more attractive for traditional advertisers," said Pete Petrusky, Director, Advisory Services, PricewaterhouseCoopers. "The high percentage growth in revenues is more significant given the larger revenue base."

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