US internet advertising revenues for 2006 are estimated at $16.8 billion, a 34% increase over the previous record of $12.5 billion in 2005, according to new figures from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).
The 2006 Q4 revenues totaled just under $4.8 billion, making it the highest quarter reported. Fourth-quarter revenues for 2006 represent a 32% increase over the same period in 2005, and a 15% increase over Q3 of 2006, estimated at slightly under $4.2 billion.
Randall Rothenberg, IAB CEO and president, said: “The continued growth in interactive advertising is clearly based on marketers’ recognition that they can connect with consumers most effectively through interactive media.
“The increase underscores marketers’ understanding that interactive advertising can engage consumers, build brands and sell products and services.”
David Silverman, partner, PricewaterhouseCoopers, said: “Results for 2006 confirm a very healthy environment for online advertising. All signs point to a steady increase in the level of spend by traditional advertisers that are using online advertising as an important part of their media mix.”
Peter Petruscy, director at PricewaterhouseCoopers, commented: “The maturation of the internet as an effective advertising medium is directly tied to its ability to deliver qualified audiences to marketers.
“Moreover, online advertisers continue to test how to use the internet with other media to leverage a combination of consumer touch points across different media.”
The 2006 fourth quarter and full year online ad revenue figures were estimated by surveying and aggregating data from the top 15 online ad sellers.
The results were then extrapolated to calculate the total estimated industry figure. Actual third and fourth-quarter results will be reported in the full 2006 Internet Advertising Revenue Report, expected in April 2007.
TNS Media Intelligence released a full year forecast which said that total US advertising spending will increase 2.6% in 2007 to $153.7 billion (see US Adspend To Grow To 2.6% In 2007).
A recent report from Borrell Associates predicted that US local online video advertising will grow from $161 million in 2006 to $371 million this year (see US Local Online Video Revenues To Grow).
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