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THE IAB in a new report issued April 13, 2011 stated:
Internet advertising revenues in the United States totaled $26.0 billion for the full year of 2010, with Q3 2010 accounting for approximately $6.5 billion and Q4 2010 totaling approximately $7.5 billion. Internet advertising revenues for the full year of 2010 increased 15 percent over 2009.
US online ad spending according to eMarketer will be $30 billion in 2012 and $40 billion in 2014.
For the first time, online ad spending will surpass newspaper advertising. That makes internet advertising second only to TV among measured media.
IAB Ad Revenue Report by PWC 2009 shows the overall pattern of online advertising revenue
| Search Ads (Fees advertisers pay Internet companies to list and/or link their company site or domain name to a specific search word or phrase...includes paid listings and contextual ads) Google leads in Search advertising. | 46% | $12 billion |
| Display Banner Ads (a graphic advertising image displayed on a Web page.) Yahoo is a market leader in dispaly ads. | 24% | $6.2 billion |
| Classified Ads (fees paid to list jobs, cars, real estate and other products) Craigslist, Monster and online newspapers lead here. | 10% | $2.6 billion |
| Referrals / Lead Generation (fees advertisers pay to Internet advertising companies that refer qualified purchase inquiries (e.g., auto dealers which pay a fee in exchange for receiving a qualified purchase inquiry online) or provide consumer information (demographic, contact, and behavioral) where the consumer opts into being contacted by a marketer ) Bankrate, Cars.com, and LowerMyBills.com are examples of lead generators. | 5% | 1.5 billion |
| Rich Media (advertisements with which users can interact (as opposed to solely animation) in a web page format. These advertisements can use sound, video, or Flash, and programming languages such as Java, Javascript, and DHTML.) | 6% | $ million |
| Digital Video (video that can appear before, during or after content that includes streaming video, animation, gaming and music video content) | 5% | $1.4 billion |
| Sponsorships (includes Spotlights are custom built pages incorporating an advertisers brand; Advergaming are game or a an sponsored by link to creating a custom branded game experience; Content & Section Sponsorship is when an advertiser exclusively sponsors a particular section of the site or email ; Sweepstakes & Contests and Static ad placement that remain on a Web page for a specified period of time or embedded ads) | 3% | $718 million |
| Email (banner ads, links or advertiser sponsorships that appear in e-mail newsletters, e-mail marketing campaigns and other commercial e-mail communications) | 1% | $195 million |
Search Advertising has been increasing since 2004 from 40% to 46%. Video and Rich media has also increased. Online classified has fallen from 18% in 2004 to 10% in 2009. Sponsorships have fallen the most from 8% in 2004 to only 3% in 2010. READ THE IAB/PWC REPORT HERE 263k 
Definations are adapted from IAB definations.
Retailers and the telecomm sector had the most online ads in 2010.
Globally, WPP said online ads will contribute 37 percent of global ad growth in 2011 and is likely to reach $82 billion, a growth rate that suggests it will overtake newspaper spending (forecast at $90 billion in 2011) at some point in 2012.
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Here are some estimates from eMarketer:
JPMorgan Forecasts A 10.5 Percent Rebound In U.S. Display Advertising in 2010
Khan expects U.S. search advertising to grow an even brisker 13.2 percent pace in 2010 to $16.6 billion, after virtually flat 0.8 percent growth in 2009.
Local online advertising will hit $14.2 billion this year, 12 percent more than 2008. For 20 10 the publisher is forecasting that it will grow just 5 percent, to $14.9 billion (Borrell Associates Inc.'s new report "2010 Outlook: Local Interactive Advertising").
Search Advertising is the major type of online advertising. Search ads can be based on the keywords that are typed, contextual advertising or behavioral targeting. The costs of keywords can vary greatly depending on the demand for the term, the nature of the target market and the placement of the ad.Contextual advertising uses the context of an page, article or story a user is reading and matches it with an associated product or service ad. Someone reading articles on a new cars might receive ads related to BMW, Honda, car dealers or car review books.
Tacoda explains behavioral targeting as the ability to reach desired segments outside of contextually relevant areas.Behavioral targeting is a technology that recognizes when web-site visitors are seeking a particular product or service and then serves an ad relevant to their search at a later date on another, unrelated page (Oser, 2004 p.4). For example, a surfer who looks at real estate listings on a newspaper site on a Monday might is served an ad from a real estate agent on Thursday night when the surfer views the Sports section (Oser, 2004). Behavioral targeting uses a surprise effect with precise behavioral segments to work.
Rich media allow advertisers to take traditional media assets like video, audio, animation, and photos, and combine them into a multimedia branding experience that streams from an ad server to the client machine (Koegel, 2003). Rich media technologies include Flash, Unicast, Eyeblaster, EyeWonder, and PointRoll.
Classified advertising is increasingly moving from traditional print newspapers to online formats. Recruitment, real estate and automotive are the major types of classified ads. Monster, Career Builder and Hot Jobs are the top ranked recruitment sites. Traditional newspapers have launched online versions to increase their advertising. Craigslist is an example of a totally online company in the classified online market.
Display ads - Financial services marketers had 29% of the online display ads Web media resented 17% , Retail goods and services had 16% of impressions, telecoms had for 13%, and public services had 6%.
Average online costs or CPM in different vertical markets are provided by AdiFY for 2008-2009
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