The more granular quarter-by-quarter picture shows a record spend of $6.42 billion in third quarter of 2010, as reported by the Interactive Advertising Bureau and PricewaterhouseCoopers, followed by a new record of $7.25 billion in fourth quarter, according to eMarketer projections.

The research firm said that such spending will bring double-digit growth to online advertising for five consecutive years. The internet is the only major ad medium that will experience annual spending increases so high. Online advertising is recovering more rapidly than the overall economy, as evidenced by online’s gain in share of GDP.

Internet ad spending’s contribution to the GDP increased by 10 percent or more every quarter from third quarter 2003 through first quarter 2008. Then came the recession, and both online ad spending and the national GDP declined. However, in third quarter of 2010, online ad spending’s share of the GDP rose by 11.66 percent year over year.

By contrast, total media ad spending is less robust. Ad dollars toward all major media will increase by only small amounts from 2010 through 2014, with an average annual growth rate of 2.9 percent, adds the research firm.

David Hallerman, principal analyst at eMarketer, said: “A spending peak in fourth quarter is likely, primarily because fourth quarter has been the biggest quarter for US online ad spending every year but one since 1999.

“With multiple ways to go online and with more activities once they get there, people spend more time online. Simply put, marketers increasingly know that to reach their target audience, they need to advertise more online.”

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