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Internet Advertising Revenues Continue
to Accelarate at an Unprecedented Rate

First Six Months of '06 hit $7.9 Billion and Q2 Exceeds $4 Billion

During the MIXX Conference and Expo, the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) released Internet Advertising Revenues covering Q2 and the first six months of 2006. Internet advertising revenues (U.S.) for the first six months of 2006 were approximately $7.9 billion, a new record and a 37% increase over the first half of 2005.

Internet advertising revenue totaled nearly $4.1billion for the second quarter of 2006, exceeding the $4 billion mark, representing a 36% increase over same period 2005. Q2 2006 revenues represent a 5.5% increase over Q1 2006.

"Interactive delivers an arsenal of options for advertisers no matter their marketing and business objectives. 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," said Greg Stuart, CEO of the Interactive Advertising Bureau. "This latest report is a clear indication that Interactive is of increased importance to marketers today to engage their consumers and drive sales."

"The latest results reaffirm the Internet's growing importance for marketers to integrate online advertising into their overall media plans," said David Silverman, Partner, Entertainment & Media Practice, PricewaterhouseCoopers. "While search advertising remains the largest format in terms of revenues, we expect to see new formats like video ads to continue to emerge as advertisers seek to leverage the branding opportunities afforded by the growing installed base of broadband users."

"Internet advertising continues to reach new milestones, exceeding $4 billion in quarterly revenues for the first time, and on pace for another record year of revenues," said Pete Petrusky, Director, Entertainment & Media Practice, PricewaterhouseCoopers. "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."

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