(* Source: eMarketer *) 

Search and display continue to lead.

US Internet ad revenues totaled $16.9 billion in 2006, up 35% from 2005, according to the "Internet Advertising Revenue Report" from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).

Search, display, classifieds and lead generation all grew, as performance-based and CPM pricing both increased.

Consumer advertisers continue to represent the largest category of Internet advertising spending.

"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," said Peter Petrusky of PricewaterhouseCoopers. "Online publishers may continue to experience growth as marketing budget allocations to all interactive forms continue to increase."

The numbers topped eMarketer's revised estimates for 2006 by half a billion dollars. The estimates were based on IAB and PWC data, for which the last full year measured had been 2005.

"One key market shift can be seen in how display ad spending grew at a higher rate than even paid search advertising," says eMarketer Senior Analyst David Hallerman. "Brand-oriented marketers are just starting to ramp up spending, and we'll see greater growth in that area over the next few years."