Paid search advertising continues to be the most popular online ad format

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(Continued) The RFS Newsletter, Sep. 30, 2006. Page 6
"With the seventh consecutive quarter of growth behind us we are confident that the Internet will continue to reconcile the imbalances between its share of media consumption versus its relative share of total advertising spend." Paid search advertising, accounting for 40 percent of online ad revenues, continued to be the most popular online ad format, followed by display and classified advertising. "As a whole, interactive advertising delivers an arsenal of options for Internet marketers no matter what their marketing or business objectives are," said Greg Stuart, CEO of the IAB. "From search, broadband, lead generation, behavioral targeting, consumer-generated content and new emerging platforms like mobile and iPTV, Interactive continues to solidify its position as a mainstream medium."

In news on Wednesday, according to the latest numbers compiled by eMarketer, Internet advertising spending is set to increase over 26 percent in 2006 to over $15.8 billion, down a bit from 2005's rate of slightly under 30.4 percent. Such growth slowing down is consistent with the more than 2.1 point drop from 2004 to last year, and signals a potentially more mature market.

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