Wednesday November 15, 2006

On-line advertising revenues continue to set a record pace as third quarter U.S. revenues in the third quarter grew 2 percent from the $4.1 billion in the second quarter and 33 percent from $3.1 billion a year ago. Industry estimates for Q4 2006 are $4.8 billion, a 15% increase over third quarter and a blazing 33% pace over the fourth quarter of 2005.

A strong fourth quarter holiday season should bring 2006 Internet ad spending to $16.9 billion with projections now estimating that on-line ad revenues will surpass terrestrial U.S. radio for the first time in 2007. Current estimates are that terrestrial radio will end 2006 with an .08% increase to $21.8 billion and $22.24 billion for 2007.

U.S Advertising Marketshare
• Internet advertising revenues accounted for approximately 4.7 percent of total U.S. ad spending* in 2005, up
from approximately 3.7 percent in 2004.

Initial Year Growth Comparisons – Internet Advertising vs. Broadcast and Cable Television
• The first 11 years of Internet Advertising (1995-2005) were charted against broadcast television (1949-
1958) and cable television (1980-1989), presented in current dollars.
• Internet advertising revenues surpassed cable television revenues in its third year of growth, and
broadcast television revenues in its fifth year of growth. Internet advertising revenues measured below
broadcast television in years eight and nine, and surpassed it again in years ten and eleven.

Bridge Ratings is a ratings and research company based in Glendale, California. We are dedicated to providing on-going, immediate, reliable, useable and affordable audience measurement services for the radio industry. Our methodolgy is based on sound consumer research principles. We are in the business of tracking listeners - not listening. Because we are a true research company we offer flexibility