September 26, 2006

Internet advertising revenues in the US for the first six months of this year were about $7.9 billion, a 37.1 percent increase over the first half of last year, according to the latest numbers from the IAB (Interactive Advertising Bureau) and PricewaterhouseCoopers.

Additionally, online advertising revenues totaled almost $4.0 billion for the second quarter of this year, representing a 36 percent increase over the same period last year, and a 5.52 percent increase over the first quarter of 2006.

"Overall, online advertising continues to reach new milestones, exceeding $4 billion in quarterly revenues for the first time, and well on track for another record year of revenues," said Pete Petrusky of PwC.

"With the seventh consecutive quarter of growth behind us we are confident that the Internet will continue to reconcile the imbalances between its share of media consumption versus its relative share of total advertising spend."

Paid search advertising, accounting for 40 percent of online ad revenues, continued to be the most popular online ad format, followed by display and classified advertising.

"As a whole, interactive advertising delivers an arsenal of options for Internet marketers no matter what their marketing or business objectives are," said Greg Stuart, CEO of the IAB.

"From search, broadband, lead generation, behavioral targeting, consumer-generated content and new emerging platforms like mobile and iPTV, Interactive continues to solidify its position as a mainstream medium."

Of all measuring methods used, CPM was the favorite pricing analytic among the respondants.

Source: eMarketer