Internet ad revenue hits record $31 billion in 2011

Internet advertising revenue hit a record $31 billion in the United States in 2011, according to the Associated Press, which cited a study released on Wednesday.

The Interactive Advertising Bureau conducted the study along with PricewaterhouseCoopers, said the AP.

The $31 billion was a 22 percent increase on the $26 billion from 2010. Nearly half the revenue came from the search category, at $14.8 billion, based on text ads targeting search terms and keywords which are sold by Google and other companies.

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IAB's president and CEO, Randall Rothenberg, said, "This historic moment, with an especially impressive achievement in mobile, is indicative of an increased awareness from advertisers that they need to reach consumers where they are spending their time — in digital media," according to AFP.

He added, "Pushing past the $30 billion barrier, the interactive advertising industry confirms its central place in media," highlighting the prominence of smartphones and tablets.

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Mobile advertising also reached a record high of $1.6 billion last year, a 149 percent increase from $641 million in 2010, according to The New York Times.

David Silverman, of PricewaterhouseCoopers, said, "By combining some of the best features of the Internet, along with portability and location-based technology, mobile advertising is enabling marketers to deliver timely, targeted, relevant and local advertisements in a manner that was not previously possible," according to The Times.

Meanwhile, advertising in newspapers saw a drastic and steady decline, said Reuters. Revenue from newspapers amounted to $23.9 billion in 2011, down more than 50 percent over a five-year period.

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