US internet advertising grew 35% in 2006

IAB US and PricewaterhouseCoopers LLP (PwC) have just released the Internet Advertising Revenue Report which shows record results for the full year and final quarter of 2006. Internet advertising revenues in the US continued upward totalling $16.9 billion in 2006, a new annual record exceeding 2005 by 35%. Q4 2006 internet advertising revenues totalled $4.8 billion, representing record revenues for a single quarter and a 35% increase over same period in 2005.

"Interactive advertising revenues continue to show solid growth as advertisers and agencies recognize that it is a medium that can uniquely affect consumer behaviour from product awareness, to purchase intent, to actual purchase and then brand loyalty," said Randall Rothenberg, President and CEO of IAB US. "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 states that search, display, classifieds and lead generation all continue to grow at a healthy rate with an increase in both performance-based and CPM or impression-based pricing. Consumer advertisers continue to represent the largest category of internet advertising spending.

Read the full report.