Local TV stations racked up $399 million in online ad revenues in 2006 and those revenues could grow by as much as 55 percent in 2007.

That’s the outlook in a survey released Wednesday by the Television Advertising Bureau, which said 2006 was the year in which stations sharpened their focus on the Internet and produced a 41 percent growth in Web ad revenue.

“Benchmarking the Local Website Marketplace,” the second annual effort commissioned by TVB and conducted by Borrell Associates, projected that by the end of this year that stream of ad revenue would hit $618 million.

“What was once viewed as cotton candy now seems to be a vital nutritional supplement to broadcasters’ health,” the report says.

Video advertising was strong. Seventy-two percent of TV station Web sites sold video ads, and 80 percent plan to in 2007. Less than 33% of newspaper sites sold video ads in 2006.

Real estate, health, high-tech and auto advertising dominated the seven categories that made up half of all online ad categories.

Among the recommendations of the report: View the Internet as a mass of niches, hire a dedicated sales force, consider launching a real estate section and spin-off sites that may not be branded to the station.

(Editor: Fees)