Interactive advertising revenues continue to show solid growth as advertisers and agencies recognize that it is a medium that can uniquely affect behavior.

Internet advertising revenues in the U.S. continued upward totaling $16.9 billion in 2006, a new annual record exceeding 2005 by 35%. Q4 2006 internet advertising revenues totaled $4.8 billion, representing record revenues for a single quarter and a 35% increase over same period in 2005. The data was released by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC).

“Interactive advertising revenues continue to show solid growth as advertisers and agencies recognize that it is a medium that can uniquely affect behavior,” said Randall Rothenberg, President and CEO of the IAB.

The report states that search, display, classifieds and lead generation all continue to grow at a healthy rate with an increase in both performance-based and CPM or impression-based pricing.

“The continuing strong growth of interactive advertising as evidenced by the full year 2006 survey results proves the importance of this medium to all types of marketers,” says David Silverman, partner, Assurance, PricewaterhouseCoopers. “The ability for these marketers to achieve both performance-based and branding objectives with interactive advertising is the foundation for this exceptional growth.”

Notes Peter Petrusky, director, Advisory, PricewaterhouseCoopers, “Online publishers may continue to experience growth as marketing budget allocations to all interactive forms continue to increase.”