Mon Sep 26, 1:11 PM ET - Internet Report from Yahoo!

NEW YORK (Reuters) - U.S. Internet advertising revenue grew 26 percent to $3 billion in the second quarter, driven by paid search listings and more sophisticated video and audio ads known as rich media, according to a study released on Monday.

The data provided by the Interactive Advertising Bureau and PricewaterhouseCoopers bolsters expectations that advertisers are spending more on the Internet as consumers devote more time to the Web and away from other media.

Online ad revenue in the first half of the year also rose 26 percent, to $5.8 billion, from a year earlier.

"The consistent growth in overall revenues shows marketers may be shifting more of their total advertising budgets to online," said David Silverman, partner at PricewaterhousCoopers.

Paid search listings, which allow advertisers to pay to display ads next to relevant search terms, remain the bulk of online advertising at 40 percent, buoying results for Internet companies like Yahoo and Google .

Regular display ads, such as Web page banners, represent 20 percent of online advertising, classified ads grew slightly to 18 percent, while rich media comprises 8 percent.

The IAB represents 200 online companies responsible for selling nearly 90 percent of Internet advertising in the United States.

Online Ad Spending to Hit $16 Bln by 2009

Tue Jul 27, 1:02 PM ET Add Technology - Internet Report From Yahoo!   

NEW YORK (Reuters) - Online advertising spending is expected to nearly double by 2009 to $16.1 billion and represent a much higher proportion of marketers' total budgets in that time, JupiterResearch said on Tuesday. 

Internet advertising will grow 27 percent this year to $8.4 billion, with double-digit growth for both paid search listings and display ads like banners, Jupiter said in a report. Jupiter is a division of Jupitermedia Corp (Nasdaq:JUPM - news). 

The medium is expected to increase its share of marketers' budgets from 3.5 percent last year to 6.5 percent in 2009. 

Top advertising industry forecasters have predicted total U.S. ad spending growth between 6 percent and 9 percent this year on the strength of an improved economy, political campaigns and the summer Olympic Games (news - web sites). 

Internet advertising is widely expected to be the fastest growing media category, followed by cable and network television, marking its return from the dot-com bust in 2000. 

Top advertisers have increased online spending as consumers devote more time to the Web and more sophisticated technologies make it easier to create and track Internet campaigns.