MR: Internet Ad Revenue Up 37% to $7.9 Billion in First Half of 2006
27 09 2006New York - Internet advertising revenue rose 37% in the first half of 2006, compared with the same period a year ago, to $7.9 billion, according to a report from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers. Revenues for the second quarter of 2006 also eclipsed $4 billion for the first time — a 5.5% increase over the first quarter — and represented the seventh consecutive quarter of growth for the online ad market. While search ads sold by firms like Google maintained their 40% share of the market from last year, “displays” like banner ads and rich media ads dipped slightly from 34% to 31% of the market, and online classifieds were up a bit, from 18% in the first half of 2005, to 20% in the first six months of 2006. “While search advertising remains the largest format in terms of revenues, we expect to see new formats like video ads to continue to emerge as advertisers seek to leverage the branding opportunities afforded by the growing installed base of broadband users,” said David Silverman, a partner in the entertainment and media practice at PricewaterhouseCoopers.
