US Internet Advertising Revenues Reach Record $4.9 Billion

IAB President and CEO Randall Rothenberg said: “The continued growth of online ad revenues clearly illustrates marketers’ increased comfort with the extraordinary vitality and accountability of this medium,” said IAB President and CEO Randall Rothenberg. “It reaches consumers with an unprecedented level of efficiency and measurability that provides marketers with actionable data. And the ever-changing landscape of new platforms and technologies that enrich interactive advertising guarantees that this growth trend will continue.”

Peter Petrusky, director, PricewaterhouseCoopers, said: “The recent results are particularly impressive when the size of the advertising revenue base is taken into account,” said Peter Petrusky, director, PricewaterhouseCoopers. “Given these results, we may expect continued strong revenue growth buoyed by an expanding broadband subscriber base, which could translate into more users spending more time online and offers a platform for rich media and video ads that dial-up connections can’t render.”

“The continued growth of internet advertising, on top of the record growth of 2006 and despite advertising’s traditional sluggish first quarter, demonstrates the growing significance of interactive advertising to the overall advertising and marketing industry,” added David Silverman, partner, Assurance, PricewaterhouseCoopers.

A recent report from the Newspaper Association of America revealed that advertising expenditures for newspaper web sites in the US increased by 22.3% to $750 million in the first quarter OF 2007 (see Adspend On US Newspaper Websites Increases).

Meanwhile, recent figures from the Internet Advertising Bureau and PricewaterhouseCoopers showed that UK internet advertising expenditure grew 41% in 2006, breaking the £2 billion barrier (see UK Internet Advertising Spend Grows 41%).