April 20, 2006 12:48 PM PDT

Online ad spending hits record in 2005

The amount of money spent on Internet advertising in the U.S. rose by 30 percent last year to a record $12.5 billion, according to a report released Thursday by advertising trade group the Interactive Advertising Bureau and independent auditor PricewaterhouseCoopers.

Keyword search ads led the sector, representing 41 percent market share and $5.1 billion in revenue, followed by total display advertising, with 34 percent market share and $4.3 billion in revenue, and classified advertising with 17 percent market share and $2.1 billion in revenue.

Display advertising includes subgroups of display, sponsorship, slotting fees and rich media.

Nearly half (46 percent) of the ad deals were cost-per-thousand impressions, which include display and banner ads, followed by performance deals, which include cost-per-click and cost-per-transaction, which accounted for 41 percent of the online-advertising contracts.

In the fourth quarter of 2005, Internet advertising revenue totaled $3.6 billion, up 34 percent from the year-earlier period.

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Internet advertising, market share, online advertising, U.S., Microsoft Corp.

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CNET leads the way in annoying ads
I bet a significant portioin of that 12+ billions come to CNET. I know there is no such thing as free lunch and I am not against anybody making money. But what's with all those annoying flash ads that completely obscure the page and deminish readability? I once had several small squares that crawled all over the screen before they assembled into a big ad banner. Thanks to Firefox/FlashBlock..I now flush your millions down the toilet.
Posted by The_Nirvana (104 comments )
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Even if you block it, they still get paid. Cha-ching!

This is a very interesting article. It is definitely a motivator to get out there and garnish some web traffic.
Posted by emehrkay (13 comments )
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