According to a new report, online ad revenue climbed to about $17B in 2006, a 35% gain over 2005.
Branded display ads and search placements helped the online ad industry post its best year ever in 2006, according to numbers released Wednesday by the Internet Advertising Bureau and PricewaterhouseCoopers. Overall, revenue increased 35% last year to $16.9 billion–due in large part to record fourth-quarter revenue of $4.8 billion.
Both search revenue and display revenue climbed 31% year-over-year, to $6.8 billion and $5.4 billion, respectively. Search accounted for 40% of last year’s revenues, slightly lower than the 41% it commanded in 2005. Display advertising, classifieds and referrals accounted for 32%, 18% and 8% of last year’s full revenues, respectively.
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Front Porch Forum is just getting its sponsorship program rolling, and we’re going with a flat rate per ad approach. This report states that 48% of online ads work that way, while 47% of the ad deals are based on ad performance.