Internet advertising revenues estimated at $16.8B for 2006.

The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) announced that Internet advertising revenues for 2006 are estimated at $16.8 billion, a 34 percent increase over the previous revenue record of $12.5 billion in 2005. The 2006 Q4 revenues totaled just under $4.8 billion, making it the highest quarter reported. Fourth-quarter revenues for 2006 represent a 32 percent increase over the same period in 2005, and a 15 percent increase over Q3 of 2006, estimated at slightly under $4.2 billion.

“The continued growth in Interactive advertising is clearly based on marketers’ recognition that they connect with consumers most effectively through Interactive media,” said IAB CEO and President, Randall Rothenberg. “The increase underscores marketers’ understanding that Interactive advertising can engage consumers, build brands and sell products and services,” he continued.

“Results for 2006 confirm a very healthy environment for online advertising,” said David Silverman, partner, PricewaterhouseCoopers. “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.”

“The maturation of the Internet as an effective advertising medium is directly tied to its ability to deliver qualified audiences to marketers,” said Peter Petrusky, director, PricewaterhouseCoopers. “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 revenue figure. Actual third and fourth-quarter results will be reported in the full 2006 Internet Advertising Revenue Report, expected in April 2007.