Web Revenue Up 35% (yes, but where, and why ?)

The Web advertising industry had its best year ever in 2006, climbing 35 percent to $16.9 billion in overall revenue, according to the Internet Advertising Bureau.

Packaged-goods advertisers showed the highest growth rates among industries, earmarking $1.4 billion to interactive, more than doubling spending in 2005. Automakers also increased their already strong expenditures, with revenue from car brands rising 48 percent to $3.7 billion.

"We have every confidence this growth will continue as marketers allocate more of their total marketing dollars to interactive and the industry delivers effective and innovative platforms for connecting with consumers," Randall Rothenberg, the IAB's CEO, said in a statement.

According to the IAB, the Web now accounts for about 5.9 percent of overall ad spending, closing in on radio, which generates $20.8 million in ad revenue.