Beating industry watchers expectations and a full 35% higher than 2005’s spending, online marketing spending has reached a record $16.9 Billion dollars according to the Internet Advertising Bureau (IAB).

Here is how the money broke down:

40% - Search Ads
32% - Display Ads
18% - Classifieds
8% - Lead Gen
2% - Email Advertising

While 17 billion dollars sounds like a great deal of money its important to note that this still accounts for only an estimated 5.6% of total marketing monies spend annually. However, online ad spend continues to grow year after year while other mediums such as newspapers and broadcast television are seeing stagnation and in some cases decline.

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