Companies are spending more and more online, a trend that is backed by figures from the Interactive Advertising Bureau. Internet advertising revenues for 2006 are estimated at $16.8 billion, a 34 percent increase over the previous year, when revenue was a record $12.5 billion.

“The increase underscores marketers’ understanding that Interactive advertising can engage consumers, build brands and sell products and services,” said IAB CEO and President, Randall Rothenberg.

“Results for 2006 confirm a very healthy environment for online advertising,” said David Silverman, partner, PricewaterhouseCoopers. “All signs point to a steady increase in the level of spend by traditional advertisers that are using online advertising as an important part of their media mix.”

The trend bodes well for podcasting and video podcasting. As more money and attention flow into Internet media, podcasters are getting a bigger and bigger slice of a growing market.

Internet media advertising is also shifting from companies testing the waters to companies using Internet media as one component of their media mix. This shift has brought with it an increased emphasis on accountabiity.

“The maturation of the Internet as an effective advertising medium is directly tied to its ability to deliver qualified audiences to marketers,” said Peter Petrusky, director, PricewaterhouseCoopers. “Moreover, online advertisers continue to test how to use the Internet with other media to leverage a combination of consumer touch points across different media.”