Internet advertising revenue in the United States jumped 22% to USD 31 billion in 2011 setting a record high.
The bulk of last year's spend went to search and display advertising, according to a report from the Interactive Advertising Bureau and PwC released on Wednesday.
The numbers show the growing importance of digital among advertisers who are choosing to place more dollars on websites, smartphones, and tablet devices to reach consumers.
In contrast, newspapers - once popular vehicles to reach a broad audience - have seen a drastic and steady decline. Advertising revenue in newspapers was USD 23.9 billion in 2011 down more than 50% over a five-year period.
The report also found mobile advertising increased 149% to USD 1.6 billion in 2011. While mobile advertising experienced the fastest growth of all the categories, it still represents a tiny sliver of advertisers' total spend.
Search advertising remains the largest part of overall spending coming in at USD 14.7 billion, up almost 27% from the prior year.
Display advertising, which includes video, banners and big splashy formats, rose 35% to USD 11.1 billion.
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