Search Still Leads Online Ad Spending

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:

  1. Direct mail – $55.7 billion
  2. Newspapers – $51.2 billion
  3. TV networks (broadcast and cable) – $39.9 billion
  4. TV distribution – $32.5 billion
  5. Magazines – $24.6 billion
  6. Radio – $20.8 billion
  7. Internet – $16.9 billion
  8. Outdoor – .6.8$ billion

Kate Kaye has the full story at ClickZ News.