The Internet Advertising Bureau today announced in a positive report this morning that internet advertising in the U.S. grew 10.6 percent to $23.4 billion in 2008.

The report is an annual report for the online advertising industry for 2008.

• Online advertising grew by about 10.6% last year while outpacing TV growth
• Search advertising dominated with 45 percent of total Internet advertising market share and grew 20 percent for the year.
• Rich media and video also showed fast growth.  With online video ads growing 123%
• Display advertising grew 8 percent growth for the year, but declined 4 percent in the fourth quarter
• Performance advertising was 57%, while impression based advertising was 39% and the rest was hybrid at 4%

The full report is here for your reading pleasure.

IAB 2008 Report – Get more Information Technology:

IAB 2008 Report

Given the state of the economy, overall it is great news for the industry. We think that Internet/Interactive advertising will will continue to gain share from traditional media formats. Remember the old adage, dollars follow eyeballs.

Here is some coverage from across the web:
TechCrunch
All Things D: MediaMemo