New York-based Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) have released figures showing internet advertising revenues in the US for the first six months of 2005 were around USD5.8 billion, a 26 per cent jump from the first half of 2004.

Internet advertising revenues for the second quarter of 2005 totalled USD2.985 billion, also a 26 per cent increase over the same period for 2004.

David Silverman, a PwC partner, said the growth in overall revenue indicated marketers may be shifting more of their advertising budgets to online advertising.

"This is a natural development as research shows more consumers are spending a larger percentage of their media time online, while the flow of advertising dollars follows," Silverman said.

Search ads made up 40 per cent of internet advertising revenues for the first half of 2005, the same as in 2004, but revenue totals for search ads increased 27 per cent from USD1.8 billion to USD2.3 billion. Display ads made up 20 per cent and classifieds 18 per cent.

The Advertising Revenue Report, conducted by the New Media Group of PwC, was started by IAB in 1996. Online advertising revenue data from websites, commercial online services, free email providers and other companies are surveyed and a full report is issued twice yearly. The report can be downloaded from www.iab.net next week.

IAB, founded in 1996, sells more than 86 per cent of online advertising in the US. It represents more than 200 interactive companies that support the sale of online advertising.