U.S. online ad revenue hits record high

Advertisers spent $26 billion last year, representing a 15 percent increase from 2009. As with previous years, search advertising leads the way, followed by display-related ads.

U.S. online advertising revenue has hit an all-time high, the Interactive Advertising Bureau reported yesterday.

According to the IAB, which enlisted PricewaterhouseCoopers to help prepare the results, online ad spending hit $26 billion last year in the U.S., representing a 15 percent gain year over year.

In the fourth quarter alone, advertisers spent $7.45 billion on the Web, jumping 19 percent compared with the fourth quarter of 2009.

Search advertising continued to be the most popular choice among advertisers, totaling $12 billion last year. Advertisers spent $9.9 billion on "display-related" ads, including banners, sponsorships, and digital video commercials. Classifieds and directory ad spending hit $2.6 billion.

In a separate report released yesterday, Econsultancy delved into search marketing. The company found that advertisers spent $16.6 billion in the U.S. and Canada on search marketing last year, translating to a 14 percent gain over 2009. It expects search marketing revenue to hit over $19 billion this year.

IAB estimated that U.S. mobile ad revenue last year was between $550 million and $650 million. It was the first time IAB included mobile ad revenue in its annual report on the status of online advertising.

Featured Video

Twitter flips order of some tweets, users flip out

Changes to Twitter's timeline could make the social network more appetizing to some -- and confusing to others. Meanwhile, LG teases an "always-on" screen for the G5 phone.

by Bridget Carey