Q1 2004 Interactive Advertising Revenues Tops Record; Revenues Nearly Total $2.3 Billion

Business Wire, May 24, 2004

Business Editors

NEW YORK--(BUSINESS WIRE)--May 24, 2004

Today, the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) announced that Internet advertising totaled nearly $2.3 billion in the first quarter of 2004 - the highest quarterly total on record since PwC and IAB began tracking revenues in 1996. This quarter also marks a 38.9% increase over Q1 2003 ($1.6 billion) and a 3.9% increase over Q4 2003 ($2.2 billion.) The IAB sponsors the Internet Ad Revenue Report, which is conducted independently by PwC.

The first-quarter online ad revenue figure was estimated by surveying and aggregating 2004 first-quarter data from the top 15 online ad sellers. The results were then extrapolated to calculate the total estimated industry revenue figure. Actual first quarter results will be reported along with actual second quarter revenues in July 2004.

"Clearly, we're thrilled with the numbers. However, they are just one side of an enormously compelling story," said Greg Stuart, President and CEO, IAB. "The last two years have offered marketers the opportunity to collect research and data that proves, beyond a shadow of a doubt, Internet advertising accomplishes key marketing goals as well, if not better, than any other ad medium. The proof is in the results."

"All through 2003 we published positive revenue results for Internet advertising and the trend continued through the first quarter of 2004. The business fundamentals remain solid, the technology infrastructure is advancing at a rapid pace and marketers are continuing to use the Internet for all types of marketing and promotion," said Tom Hyland, Partner and Chair, New Media Group, PricewaterhouseCoopers.

Conducted by the New Media Group of PricewaterhouseCoopers the "Advertising Revenue Report" was started by the IAB in 1996, and represents data from all companies that report meaningful online advertising revenues. The results are the most accurate measurement of interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertising on the Internet. The survey includes data concerning online advertising revenues from Web sites, commercial online services, free e-mail providers, and all other companies selling online advertising. First and third quarter revenue reports are estimates, with the actual figures being released along with second and fourth quarter data respectively.

About PwC

PricewaterhouseCoopers (www.pwc.com), the world's largest professional services organization, helps its clients build value, manage risk and improve their performance. The PricewaterhouseCoopers New Media Group -- with offices in New York, Los Angeles, Seattle, San Francisco Bay Area, and Boston -- combines content and technology specialists to provide comprehensive service to dynamic entrepreneurial companies. Services include business assurance services, ad delivery and privacy attestation and consultation, assistance with mergers and acquisitions, tax planning and compliance, capital structuring and employee benefits and executive compensation packages.

About IAB

Founded in 1996, the Interactive Advertising Bureau (IAB) represents leading interactive companies that are actively engaged in, and support the sale of interactive advertising. IAB members are responsible for selling over 75% of online advertising in the United States. IAB member companies include: 24/7 Real Media, America Online, Inc., CNET Networks, Google, MSN, New York Times Digital, Overture, Wall Street Journal Online, The Walt Disney Internet Group, Yahoo! and over 180 others. On behalf of its members, the IAB evaluates and recommends standards and practices, fields interactive effectiveness research and educates the advertising industry regarding the use of interactive advertising. For more information please visit www.iab.net.