The world saw Internet advertising for Q1 2012 reach $8.4 billion, according to the biannual report from  the Interactive Advertising Bureau (IAB).  For the first time, Internet advertising revenue reached its biggest number ever during a single quarter.

The data collected by IAB and the New Media Group of PwC U.S. shows that ad revenues reached $8.4 billion, an increase of 15 percent, compared to $7.3 billion reported in the first quarter of 2011.

“The year-over-year growth between Q1 2011 and Q1 2012 sets quite a milestone,” said David Silverman, Partner, PwC U.S. “Moreover, a 15 percent increase over the comparable period in 2011 is a solid affirmation the internet is delivering on its promise to attract consumers and the advertising dollars that follow.”

But the year-after-year growth is actually slowing down.  Ad revenues reached a 23 percent increase between the first quarter of 2010 and the first quarter of 2011. First quarter ad revenues for the year 2010 grew 7.5 percent to $5.9 billion.

“More online consumers than ever are taking to the internet to inform and navigate their daily lives–by desktop, tablet or smartphone,” said Randall Rothenberg, President and CEO, IAB. “Marketers and agencies are clearly–and wisely–investing dollars to reach digitally connected consumers.”

The report is based on data concerning online advertising revenues from commercial online services, web sites, free email providers, and all other companies selling digital advertising.

“Digital media captures consumers’ imaginations, and marketers increasingly turn to interactive advertising to successfully speak to their customers,” said Sherrill Mane, Senior Vice President, Research, Analytics & Measurement, IAB.

Online ad industry

One of the hottest recent industry trends, online advertising, is garnering attention from investors and developers thanks for social platforms, mobility and analytics. Rise in spending ads on social platforms, mobile and online video are main contributors for the growth of online ad industry.

According to the IAB’s 2011 annual report, display-related ad revenues was the next-largest category, at 34.8 percent share including banner ad (21.5 percent), rich media (4.1 percent), digital video (5.7 percent), and sponsorship (3.5 percent).

Mobile was the fastest-growing category in last year and revenues fueled 3.7 percent of the total online ad revenue growth of 22 percent. Mobile ad business already reached $5 billion worldwide.

Facebook, for instance, is one of the main drivers for the growth. Earlier this year, eMarketer predicted that Facebook’s ad revenue from online display and mobile ad would reach $5 billion.

While Facebook is still not clear about its mobile strategy, the company revealed a new privacy policy last week that let the company show users ads on external sites based on their likes.

The online ad industry will only continue to evolve, meeting the consumer at every turn.  The mobile web, as you can see, is becoming a growing influence in the effectiveness of online advertising, and could become a major factor in the future of the industry.  Social, too, is an important sector to watch as it ties in much of our consumer behavior for the benefit of market research and promotions.