Wednesday, March 7, 2007
IAB/PwC Release Fourth-Quarter and FY 2006 Internet Ad Revenue Figures
Internet Advertising Revenues Estimated at $16.8 Billion for Full Year 2006
Q4 2006 Totals Nearly $4.8 Billion, Setting a New Industry Record

NEW YORK, NY (March 7, 2007) – The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) today 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.

The IAB sponsors the Internet Advertising Revenue Report, which is conducted independently by PricewaterhouseCoopers. The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first, third and fourth quarters. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information.

About PricewaterhouseCoopers

PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 140,000 people in 149 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.

"PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

About the IAB:
Founded in 1996, the Interactive Advertising Bureau (IAB) represents over 300 leading interactive companies that are actively engaged in, and support the sale of interactive advertising. IAB members are responsible for selling over 86% of online advertising in the United States. On behalf of its members, the IAB evaluates and recommends standards and practices, fields interactive effectiveness research and educates the advertising industry regarding the use of interactive advertising. For more information, please visit www.iab.net.

 

IAB Contact
Marla Nitke
Director, Marketing Communications
212.380.4714
[email protected]

PricewaterhouseCoopers Contact
Suzanne Dawson for PricewaterhouseCoopers LLP
212.329.1420
[email protected]