Online Ads Racked Up $16.8 Billion In 2006

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Internet advertising boomed last year as revenues across the industry grew 34 percent over the total for 2005, when advertisers spent $12.5 billion.

Online Ads Racked Up $16.8 Billion In 2006
Online Ads Racked Up $16.8 Billion In 2006

The effectiveness and cost efficiency of Internet advertising attracted plenty of business in 2006. The Interactive Advertising Bureau and its Internet Advertising Revenue Report partner, PricewaterhouseCoopers, found estimated spending for 2006 reached a new high watermark.

Holiday period spending nearly reached $4.8 billion, making the fourth quarter of 2006 the highest quarter ever reported. Peter Petrusky, a director with PricewaterhouseCoopers, credited the maturation of the Internet’s effectiveness as an advertising medium for the results.

The multi-billion dollar market has been a big driver of the activities of the big Internet players. Google of course has made its fortune from online ads, which deliver 99 percent of the company’s revenue.

Yahoo spent 2006 feverishly reworking its Internet ad system to more closely emulate Google’s relevance model for delivering advertising to viewers. Early accounts have been favorable as ad agencies start to see greater activity on Yahoo ads.

Microsoft’s stagnant movement in search market share, depriving it of greater search ad business, likely contributed to the recent departure of its top search executive.

The Seattle P-I reported Christopher Payne will leave his post as corporate VP for Live Search to launch a non-search related technology startup.

Those three big search companies face the continuing charge of other search companies like Ask, alternative ad technologies from Quigo, MIVA, and the ongoing march of startups that could spawn the next Yahoo or Google.

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Online Ads Racked Up $16.8 Billion In 2006
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