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US online ad revenues reached a new record of $4.2bn in Q3, according to figures from the Interactive Advertising Bureau (IAB).

The report, conducted by PwC, showed a 33% increase in internet ad revenues from the same period in 2005, and a rise of 2% from Q2’s figure of almost $4.1bn.

IAB general manager Sheryl Draizen said more advertisers have realised the effectiveness of online ads:

"The consistent growth of online advertising is a clear indication that marketers continue to embrace the true power of interactive advertising.

"Marketers are experiencing how this medium enhances their ability to target and engage the audience that matters to their brand and then measure its effectiveness in ways no other medium provides."

In a speech in London yesterday, Yahoo! CEO Terry Semel said growth predictions were underestimating the market by failing to take account of the potential of video, social media and mobiles advertising.

"[Video] will be ever-present throughout the internet, and it will find its proper way to advertise.

"So whether it's mobile or whether it's video or whether it's more and more community, these factors have not gone into those numbers, so we think the actual growth potential of advertising online is really being understated."

Further reading:
Online Ad Serving Solutions - A Buyer's Guide

Graham Charlton

Published 15 November, 2006 by Graham Charlton

Graham Charlton is the former Editor-in-Chief at Econsultancy. Follow him on Twitter or connect via Linkedin or Google+

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