Q3 Online Ad Revenues Up 150 Percent

Jan 31 2000

The Net ad industry experienced a boost during third-quarter 1999, according to newly released data from the Internet Advertising Bureau and PricewaterhouseCoopers. Reaching $1.2 billion during 1999's third quarter, online advertising revenue increased almost $300 million over the previous quarter and about 150 percent over the same quarter in 1998. For the final quarter of 1999, IAB expects holiday marketing efforts to push Net ad revenues up to $1.6 billion, bringing the year-end total to well over $4 billion.

By and large, these dollars continue to flow to a handful of sites: Almost three-fourths of total revenues went to the top 10 Web publishers. Banner advertising dipped to 55 percent of revenue, down slightly from 59 percent in the second quarter. Pricing models also shifted slightly due to the increased use of hybrid models that combine ad impressions, click-throughs and returns on investment for sales generated.

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Source: Internet Advertising Bureau, PricewaterhouseCoopers