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RealTime IT News

IAB: Nearly $1 Billion Spent on Internet Ads in 1997

The Internet Advertising Bureau said its latest report shows that spending for advertisements on the Internet reached about $906 million in 1997.

And fourth-quarter spending patterns, if they continue in 1998, would make the industry a billion-dollar business.

The 1997 total represents an increase of 240% from 1996, according to the report. And fourth-quarter ad sales hit $335.5 million, up from $227.1 million in the quarter ending in September.

The survey was done by Coopers & Lybrand and is considered one of the best estimates of the nebulous dollar amounts that get bandied about in the world of Internet advertising, as Web operations report their figures anonymously.

Computer advertisers accounted for 33% of fourth-quarter expenditures; consumer-related ads comprised 26%, according to the survey. In the two prior quarters, consumer ad spending had outstripped computer ads, but the fourth quarter saw strong spending by hardware and software vendors.

Although the rate of increase in ad spending for Internet media is impressive, it still fell behind all other forms of media, including billboards.