The Interactive Advertising Bureau (IAB) released the Internet Advertising Report this week, which shows record results for the full year and final quarter of 2006. Internet advertising revenues continue to boom upward, totaling $16.9 billion for 2006—more than 35 percent higher than 2005—which had held the previous one-year record.
In addition, Internet advertising revenues for the fourth quarter of 2006 equaled $4.8 billion, marking the highest revenue quarter ever.
“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,” says Randall Rothenberg, president and CEO of the IAB.
The report, prepared for the IAB by PricewaterhouseCoopers, shows that keyword search accounted for 40 percent of 2006 Internet advertising revenue, followed by display advertising (including banner ads, sponsorship and rich media) at 32 percent. As was the case in 2005, consumer advertising represented the largest category of Internet advertising spending.