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The Interactive Advertising Bureau (IAB) released its 2006 Internet Advertising Revenue Report yesterday, with the figures revealing that total online ad spend reached $16.9bn (£8.5bn).

The report (PDF) shows that online ad revenue grew by 35% on 2005's figures, with a record $4.8bn (£2.4bn) in revenues for Q4 2006.

Other highlights from the report include:

  • Search advertising accounted for 40% of revenue  - around £6.8bn (£3.4bn).
  • Display advertising made up 32% of revenue, classifieds 18%, and lead generation 8%.  
  • Consumer advertisers spent most, accounting for 52% of revenues, with financial services advertisers on 16% and computer advertisers on 10%.
  • In the consumer category the biggest sub-categories were retail (47%), automotive (22%), leisure (13%), and entertainment and packaged goods (both 8%).
  • Display advertising totalled $5.4bn (£2.7bn), with display ads accounting for 22% of 2006 revenues, rich media 7%, and sponsorship 3%.
  • Internet ad revenue accounted for 5.9% of total US ad spending in 2006.

While the IAB's figures for UK ad spend last year revealed that online ad spend had overtaken newspaper advertising, US newspaper ad spend was £51.2bn (£25.7bn), far more than that spent online.

Graham Charlton

Published 24 May, 2007 by Graham Charlton

Graham Charlton is the former Editor-in-Chief at Econsultancy. Follow him on Twitter or connect via Linkedin or Google+

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