Internet Ad

Source: IAB, Quaterly Internet Ads Revenues

Source: IAB Internet Ads 2006.pdf

Key trends underlying 2006 results

For the third consecutive year, revenues post record results

Total revenues for the 2006 fourth quarter ($4.8 billion) increased 14 percent from the 2006 third-quarter total of $4.2 billion, and 33 percent from the 2005 fourth-quarter total of $3.6 billion. Full year 2006 Internet advertising revenues totaled $16.9 billion, up 35 percent versus full year 2005 revenues of $12.5 billion.

“Interactive advertising revenues continue to show solid growth as advertisers and agencies recognize
that it is a medium that can uniquely impact consumer behavior from product awareness, to purchase
intent, to actual purchase and then brand loyalty. We have every confidence that this growth trend will
continue as marketers allocate more of their total marketing dollars to interactive and the industry
delivers effective and innovative platforms for connecting with consumers.”

—Randall Rothenberg, President and CEO, IAB

Consumer Advertisers Lead Spending

Consumer-related advertisers accounted for the largest category of revenues at 52 percent of 2006 full year revenues, up from 51 percent from the full year 2005. Financial Services, the second-largest category, accounted for 16 percent, followed by Computing advertisers at 10 percent. Within the Consumer category the biggest sub-categories are Retail (47 percent of 2006 consumer revenue category), Automotive (22 percent), Leisure (13 percent), Entertainment (8 percent) and Packaged Goods (8 percent).

“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. The ability for these marketers
to achieve both performance-based and branding objectives with interactive advertising is the
foundation for exceptional growth.”

—David Silverman, Partner, PricewaterhouseCoopers LLP

Search Continues to Lead, Followed by Display, Classifieds and Referrals

Search revenue accounted for 40 percent of 2006 full year revenues, slightly lower than the 41 percent for the full year 2005. Display advertising, Classifieds, and Referrals accounted for 32 percent, 18 percent, and 8 percent of 2006 full year revenues respectively.

“The results for 2006 show the Internet continues to offer marketers the widest spectrum of advertising
formats, from search-based text ads to dynamic rich-media and broadband video ads. Online
publishers will continue to experience growth as marketing budget allocations to all interactive forms
continue to increase.”

—Peter Petrusky, Director, PricewaterhouseCoopers LLP