Internet Ad Revenue $1.5B for Q4 2002; $5.95B for Full Year 2002

Internet advertising revenue in the U.S. totaled $1.5 billion for the fourth quarter of 2002, increasing over 2 percent from the third quarter, reflecting the first consecutive quarterly increase since the second quarter of 2000. Internet advertising for full-year 2002 totaled $5.95 billion. These top-line results are based on compiling data from the top 15 online ad sellers, which historically account for over 80 per cent of total industry revenues. The results of this revenue compilation are then extrapolated to calculate the total industry revenue figure. These estimates will be adjusted in the 2002 full-year report, including data breakouts, to be released next month. The Internet Ad Revenue Report is sponsored by the Interactive Advertising Bureau (IAB) and conducted independently by the New Media Group of PricewaterhouseCoopers (PwC).

While the $1.5 billion fourth-quarter figure decreased 9.8 percent from the same period a year earlier, it marks the first single-digit year-over-year percentage decrease since the first quarter of 2001. �The improved online advertising environment reflects a confluence of factors The publishers are offering a more manageable, uniform and understandable business proposition than ever before. The creative side has gotten smarter and is delivering compelling, entertaining content, which will only improve as the installed base of high-speed access users increases. This adds up to a fertile environment for the industry to right and propel itself,� said Greg Stuart, president and CEO, Interactive Advertising Bureau.

�The improved performance over the past two quarters reflects a stabilizing online advertising market, highlighted by continued strength in paid-for-search results. The recent upturn, coupled with forecasts of continued expansion of broadband distribution, bodes well for a strong year in 2003� said Tom Hyland, Chair, PricewaterhouseCoopers New Media Group.

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