Online advertising revenues are expected to grow by 31 percent to $16.4 billion this year and will most likely rise 19 percent to $19.5 billion in 2007, according to eMarketer.

The New York Times reports that the strong advertising market raises the question as to whether publishers will raise the prices of ads sharply.

"Rates are going up, but effectiveness is going up too," Greg Stuart, chief executive of the Interactive Advertising Bureau, told The Times.

Stuart said that consumers are now more likely to make a purchase or request additional information online.

This past holiday season saw a robust growth in the online purchasing index.

Last week, Nielsen//NetRatings announced that the total number of visits to the Holiday eShopping Index grew 20 percent year over year, from 459.5 million to 551.6 million in the week ending December 17th.