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Ad Revenue Grew 34 percent to $16.8 billion in 2006
Over 20 percent digital revenue growth projected
for business media companies in 2007.
from AICPA Custom Media Solutions
U.S. online advertising revenue climbed 34 percent
to $16.8 billion during 2006, setting a new record for the third
consecutive year, according to estimates released last week by the
Interactive Advertising Bureau (IAB), an industry trade group.
Last year's online ad spending totaled nearly $4.8
billion during the fourth quarter — the most recorded for
any three-month period during the 10 years that the Interactive
Advertising Bureau has been tracking the Internet's growth as a
The fourth-quarter volume represented a 32 percent
increase from the same time last year.
Advertisers have been steadily shifting more of
their budgets online to follow the increasing numbers of consumers
who are spending more time on the Internet instead of watching TV
or reading newspapers and magazines. Online ad revenue in the United
States has more than doubled from $7.3 billion in 2003, the IAB
Driven by advertisers’ desire for immediate
and measurable return on investment, business media companies are
creating easily measurable online revenue opportunities in many
forms including banner ads, Webinars, sponsorships and blogs to
name just a few.
Media President Gordon Hughes told Media Business magazine
recently that he expects digital revenue to increase 22 percent
to 25 percent for business media companies in 2007. These companies
will generate 14 percent of their overall revenue from e-media,
"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," said
David Silverman, a partner with PricewaterhouseCoopers, an accounting
firm that helps IAB compile the 2006 ad data.