Online or Internet advertising is thriving in the U.S., according to figures released in the latest IAB Internet Advertising Revenue Report.

Businesses and individuals spent approximately $12.1 billion on online advertising in the first six months of 2010, up 11.3% from the from the first half of 2009 and 13.9% from the second quarter of 2009. In fact, this was both the highest first-half and second-quarter revenue ever recorded.

Search advertising continued to monopolize the greater share of online ad dollars, having attracted more than $5.7 billion in spending between January and June this year — a year-over-year increase of 11.6%. Display advertising, which includes banner ads, digital video, rich media and sponsorships, garnered more than $4.4 billion in the first half of 2010, a 16% increase over the same period in 2009.

Digital video recorded the greatest growth of all. More was spent in video advertising from January to June than in any other half-year period before, an increase of 31% from the first half of 2009.

IAB’s SVP of Industry Services Sherill Mane cited growing online advertising budgets among consumer packaged goods and pharmaceutical companies for the growth.

“While the recession clearly affected short term growth in 2009, with double digit growth in both search and display during the first six month of 2010, the long term internet advertising prospects continue to be strong,” added David Silverman, PwC Assurance partner.