• by Mark Walsh  @markfwal, May 13, 2010

Internet advertising revenues in the U.S. hit $5.9 billion for the first quarter of 2010, a 7.5% increase over the same period in 2009, according to new data from the Interactive Advertising Bureau and PricewaterhouseCoopers. The total is the highest first-quarter revenue level ever for the industry, although it reflects a seasonal decline from the fourth quarter, when ad spending typically peaks.

Online ad revenue overall in 2009 fell 3.4% to $22.7 billion, as the broader economic downturn led to reduced spending year-over-year for the first time since the 2001-2002 recession. But the 14% upswing in the fourth quarter to $6.3 billion from the prior quarter was viewed as a sign of a rebounding online ad market leading into 2010. The first-quarter results were seen in the same light.

"We are seeing continued signs of an improved economy and interactive advertising market," said David Silverman, a PwC Assurance partner, in a statement. "The media industry -- like the economy as a whole -- saw tremendous challenges this past year, and uncertainty about the recovery remains. However, entering 2010 with such strong Q1 revenues is a sign of the health and vitality of online media, and of marketers' continuing investment in interactive as a cornerstone of their advertising campaigns."

Analysts are generally projecting at least single-digit growth for U.S. online advertising this year as marketers shift more of ad budgets to digital formats. As a result of the solid first-quarter showing, eMarketer has revised its forecast upward to $25.1 billion, reflecting a 10.8% increase over 2009. That's almost double the 5.5% gain to $23.6 billion that the research firm had predicted in December.

Display ad spending has also been more steady than expected -- increasing 4% to $8 billion in 2009, helped by a 39% gain in video spending to $1 billion, according to IAB figures. Major Web publishers such as Yahoo have also reported an uptick in brand advertising since the fourth quarter. The Web portal's premium display sales jumped 24% and overall display rose 20% in the first quarter compared to a year ago.