Online advertising hits new record in Q2 2004, up 43%

Online-advertising revenue was a record $2.37 bln in Q2 2004 as the industry continued to push past the levels reached during the dot-com boom, according to IAB.

Online-advertising revenue was a record $2.37 bln in Q2 2004 as the industry continued to push past the levels reached during the dot-com boom, according to IAB. Interactive Advertising Bureau said revenue in the quarter ended June 30 was up 43% YTY and up 6.2% QTQ. First-half revenue was $4.6 bln, up 40% YTY. During the dot-com boom, quarterly revenue peaked at $2.12 bln in Q4 2000 but then started a steady decline, dropping by nearly a third to $1.45 bln in Q3 2002. Since then, online-ad revenue has marched upward, rising sequentially for seven straight quarters, according to the IAB.

The YTYr growth in the latest quarter was the highest since a 60% growth rate in Q3 of 2000. Consumer advertisers are driving the industry's rapid growth. The sector represented about half of all spending in Q2, up from 35% a year ago, according to the IAB.