The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP have announced that Internet advertising revenues reached an estimated new record of $4.2 billion for the third quarter of 2006. The 2006 third quarter revenues represent a 33 percent increase over $3.1 billion in Q3 2005 and a 2 percent increase over the Q2 2006 total of nearly $4.1 billion.

The consistent growth of online advertising is a clear indication that marketers continue to embrace the true power of interactive advertising,” said Sheryl Draizen, SVP, General Manager, IAB. “Marketers are experiencing how this medium enhances their ability to target and engage the audience that matters to their brand and then measure its effectiveness in ways no other medium provides.”

"Interactive advertising, with its eighth consecutive quarter of growth and the largest single quarter ever, is on pace for its biggest year. This growth follows the trend of where consumers are spending their media time and the unique ability of Interactive advertising to effectively target and monitor ad campaigns,” said David Silverman, Partner, Assurance, PricewaterhouseCoopers.

Conducted by the New Media Group of PricewaterhouseCoopers, the "Advertising Revenue Report" was started by the IAB in 1996, and represents data from all companies that report meaningful online advertising revenues. The results are considered the most accurate measurement of Interactive advertising revenues because the data is compiled directly from information supplied by companies selling advertising on the Internet. The survey includes data concerning online advertising revenues from Web sites, commercial online services, free e-mail providers, and all other companies selling online advertising.

First and third quarter revenue reports are estimates, with the actual figures being released along with second and fourth quarter data, respectively. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information.

The IAB sponsors the Internet Advertising Revenue Report, which is conducted independently by the New Media Group of PricewaterhouseCoopers. The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first and third quarters.

Contact:

IAB
Marla Nitke, 212-380-4714
marla@iab.net

or

for PricewaterhouseCoopers
Suzanne Dawson, 212-329-1420
sdawson@lakpr.com