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Internet

Net ads nearly double in quarter

Internet ads for the second quarter this year almost doubled compared to the same quarter in 1997, according to the Internet Advertising Bureau.

    Internet ads for the second quarter this year almost doubled compared to the same quarter in 1997, according to figures released today by the Internet Advertising Bureau.

    With computer and consumer categories again leading the way, ad revenues for Web sites in April, May, and June totaled $422.7 million, up 97 percent from $214.4 million in the same 1997 period.

    Still, revenue growth slowed from the first quarter, when ad revenues increased 271 percent over the previous year to $351.3 million.

    "We are seeing increasing numbers of large advertisers integrate online spending into their overall media plans, which is a significant boost for the medium," IAB chairman Rich LeFurgy said in a statement.

    Computer advertisers accounted for 26 percent and consumer-related companies accounted for 24 percent of ad spending, with financial services and new media at 13 percent apiece. Telecommunications advertising represented 9 percent of the total, down from 14 percent of revenues in the first quarter.

    Banner ads continue to be the most popular form of advertising at 58 percent. But sponsorships, at 37 percent of revenue, continue to grow in popularity. Interstitials--full-screen ads that appear while users wait for a new Web page to download--were just 3 percent of spending, with 2 percent for other forms.

    Cash sales accounted for 95 percent of revenues, the survey found, with barter at 5 percent, up from just 2 percent in the first quarter.

    The IAB figures, which showed the ninth consecutive quarterly increase, were compiled by Pricewaterhouse Coopers from data submitted privately by more than 200 companies representing more than 1,200 Web sites. Based on data submitted by Web publishers, the IAB figures are regarded as the most accurate available.

    The survey includes online ad revenues from Web sites, commercial online services, free email providers, and other online advertising.