eMarketer today revised its forecast on 2010 online ad spending upwards

According to eMarketer’s, US spending on online advertisements will reach $25.1 billion, up from $22.7 billion, or an increase of 11%.

In December 2009, eMarketer called for only 5.5% growth.

“As Google makes gains, so does a large slice of online advertising,” said David Hallerman, eMarketer senior analyst and author of an upcoming report on US advertising spending. “When Google reported a 21% jump in net US ad revenues for Q1 2010—compared with a mere 5.3% gain in last year’s Q1—that was a key signal that the tide was turning.”

The search market will be up 15.7% year over year to almost $12.4 billion, while spending on banner ads will increase 8.2%.

Video will again post the highest growth rate, rising 48.1% to $1.5 billion.

“Display ad revenues at Yahoo! reflect that trend,” noted Mr. Hallerman. “Even as the portal’s overall net US ad revenues were down 4.5% in Q1 2010, the display ad component on Yahoo!’s sites were up by 11.7%”

Further, as marketers pull dollars away from now-weak media such as newspapers and radio, they are shifting a portion of that spend to the Internet. In addition, growth in online video advertising is bolstered by some marketers shifting dollars from their huge TV budgets.

The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC), eMarketer’s online ad spending benchmark, reported Q1 2010 spending up 7.5% year over year. eMarketer predicts even greater double-digit increases each quarter for the rest of 2010.

Good News.

Now if we can just get that increased money flowing into Google to trickle down to domainers.