Online advertising revenue hit a recordUS$ 6.3 billion in the United States in the fourth quarter of the year, a bright spot in an otherwise dismal year, according to a report on Wednesday.

Internet advertising revenue fell 3.4 per cent in 2009 over 2008 to US$ 22.7 billion , according to the report from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).

However, “there are signs of an emergent recovery in the industry,” the IAB report said.

Online advertising revenue rose 2.6 percent over a year earlier to US$6.3 billion in the fourth quarter and was up 14 per cent from the third quarter of 2009, it said.

PwC’s David Silverman said fourth quarter spending while “aided by seasonal demand, is a strong indication that the worst of the economic impact on Internet advertising is over and that the seeds of growth have been planted.”

Search advertising accounted for 47 per cent of total revenue in 2009 or US$10.7 billion, the IAB report said.

Display-related advertising, which includes banner ads, sponsorship and digital video, accounted for 35 per cent of total revenue or US$8 billion.

Digital video, which is a component of display-related advertising, rose 39 per cent in 2009 over 2008.

Classified advertising revenue accounted for 10 per cent of total revenue orUS$ 2.2 billion, down from US$3.2 billion in 2008.

“Digital media are now a core component of successful advertising and marketing campaigns,” said Randall Rothenberg, president and chief executive of the IAB, which groups media and technology companies.

“As consumers spend more of their time immersed in digital media, marketers are increasingly reaching them there, building brands online and making digital the central force in their cross-media strategies.”

Last year was the first year of decline for online advertising revenue in the United States since 2002.