According to the latest Internet Advertising Revenue Report from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC), search advertising made up 40 percent of the $16.9 billion spent in the U.S. for online advertising last year.
Search ad revenues (which include PPC search ads, contextual text ads, paid inclusion and SEO) total $6.8 billion for the year, up 31 percent from the $5.1 billion reported in 2005. The next-largest category for 2006 is display ads, at $5.4 billion, or 23 percent of total online ad spending. Next comes online classifieds, at $3.1 billion, or 18 percent of overall ad revenues.
Online ad spending in 2006 was still dwarfed by offline:
- Direct mail – $55.7 billion
- Newspapers – $51.2 billion
- TV networks (broadcast and cable) – $39.9 billion
- TV distribution – $32.5 billion
- Magazines – $24.6 billion
- Radio – $20.8 billion
- Internet – $16.9 billion
- Outdoor – .6.8$ billion
Kate Kaye has the full story at ClickZ News.