• by Wayne Friedman , October 12, 2010

Digital video ad growth on the Internet continues to outpace the market overall -- climbing 31% in the first half of 2010.

Digital video pulled in $627 million for the first six months of the year versus $477 for the first half of 2009 -- per a report released by the Interactive Advertising Bureau and PricewaterhouseCoopers. 

Still, digital is just 5% of the overall market -- one that pulled in $12.1 billion in the first six months of the year.

That's up 13.9% over 2009 and it is also a record, according to the Interactive Advertising Bureau and PricewaterhouseCoopers. Digital video had a 4% share in 2009.

Search advertising remains the dominant form of marketers' messaging on the Internet with a 47% share, pulling in $5.7 billion -- up 11.6% over 2009.

Banner ads are next with a 23% share at $2.7 billion, up 14.6% over a year ago.

Rich media is just ahead of digital video and referral/lead generation advertising, at $743 million. It rose just 5.5%, but endured a dip in market share to 6% from the 7% of a year ago.

Two other forms of Internet advertising -- email and referral/lead generation -- had declines in revenue versus 2009; email, down 19% to $120 million; referral, off 12% to $642 million.

"Nearly all types of ad formats are showing positive movement and marketers across all advertising categories, most notably consumer packaged-goods and pharmaceuticals, are increasing their investment in digital media," said Randall Rothenberg, president/chief executive officer of the Interactive Advertising Bureau.

David Silverman, PwC Assurance partner, added: "While the recession clearly affected short-term growth in 2009, with double-digit growth in both search and display during the first six months of 2010, the long-term prospects continue to be strong."