U.S. Internet advertising revenues continue to spiral, totaling $16.9 billion in 2006 - a new annual record - and growing 35 percent from 2005, according to the Internet Advertising Revenue Report released today by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC), MarketingCharts reports.

Moreover, in the fourth quarter of 2006, revenues totaled $4.8 billion - a new quarterly record - and a 35% increase over the fourth quarter of 2005.

Consumer advertisers still constitute the largest category of Internet ad spending. Search, display, classifieds and lead generation all continue to grow at a healthy rate, with an increase in both performance-based and CPM (impression-based) pricing, according to the report.

(MarketingCharts provides more data in its write-up.)

"Interactive advertising revenues continue to show solid growth as advertisers and agencies recognize that it is a medium that can uniquely affect consumer behavior from product awareness, to purchase intent, to actual purchase and then brand loyalty," said Randall Rothenberg, President and CEO of the IAB.

"We have every confidence that this growth trend 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."