Internet Advertising Revenues Set Record

    May 23, 2007

Internet advertising revenues in the U.S. totaled $16.9 billion in 2006 setting a new record and surpassing the 2005 record by 35 percent according to the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers.

 In the fourth quarter of 2006 internet advertising revenues hit $4.8 billion, setting a revenues record for a single quarter.

"Interactive advertising revenues continue to show solid growth as advertisers and agencies recognize that it is a medium that can uniquely affect consumer behavior from product awareness, to purchase intent, to actual purchase and then brand loyalty," said Randall Rothenberg, President and CEO of the IAB.

"We have every confidence that this growth trend will continue as marketers allocate more of their total marketing dollars to interactive and the industry delivers effective and innovative platforms for connecting with consumers."

The report said that search, display, classifieds and lead generation all continue to grow at a steady rate with an increase in both performance-based and impression-based pricing. Consumer advertisers continue to represent the largest category of Internet advertising spending.

"The results for 2006 show the internet continues to offer marketers the widest spectrum of advertising formats, from search-based text ads to dynamic rich-media and broadband video ads," notes Peter Petrusky, director, Advisory, PricewaterhouseCoopers.

"Online publishers may continue to experience growth as marketing budget allocations to all interactive forms continue to increase."