Internet Advertising Continues to Grow

The Interactive Advertising Bureau (IAB) has announced that “internet advertising revenues reached an estimated new record of $4.2 billion for the third quarter of 2006.”

Jason Calacanis looks at the ad spending over time, noting that the huge dip in after 2000 was due to emotions, not the value of the medium:

“That dotcom overspend, and the dip after it, shouldn’t have happened. Those swings were due to the emotional roller coaster of the dotcom bubble on the way up, and four huge events after: the dotcom bubble bursting, the accounting scandals, 9/11, and the brief recession caused by those.”

Terry Semel, CEO of Yahoo believes that there is much more room for ad revenue to grow online:

“So whether it’s mobile or whether it’s video or whether it’s more and more community (social networking sites), these factors have not gone into those numbers, so we think the actual growth potential of advertising online is really being understated.”