June 6, 2005: 12:40 PM EDT
NEW YORK (CNN/Money) - While the advertising outlook for television and other major media remains mixed, the Internet continued to draw a lot more marketing dollars in the first three months of the year, according to a new industry report.
The Interactive Advertising Bureau and PricewaterhouseCoopers announced Monday that U.S. online advertising totaled more than $2.8 billion for the first quarter of 2005, a 26 percent jump from the prior year's quarter and a 4.3 percent increase from the last quarter of 2004.
The data are roughly in line with some industry forecasts, but below others. JupiterResearch projects that Internet advertising will grow 27 percent, to $10.7 billion, in 2005. eMarketer, another technology research firm, predicts a 34 percent growth rate for online advertising this year.
Regardless, the Internet advertising growth continues to outpace by far other major media, including television, radio, magazines and newspapers.
Merrill Lynch analyst Lauren Rich Fine concluded in a recent research report that, except for the Internet and cable television, there is "absolutely no momentum" in U.S. advertising.