Web Revenue Decelerating

Display advertising is hurting. Search should be accounting for an even larger share of the market this year as performance advertising rules the day. And online video represents a bright spot in the online ad market. Those are a sampling of several familiar conclusions drawn by SNL Kagan in its newly issued report Economics of Internet Media. In its report the researcher offers a somewhat rosier outlook on the online advertising business in 2009 compared to other companies tracking the space. But for the most part, SNL Kagan echoes what many analysts have been saying for late: revenue growth has decelerated significantly, but the medium is faring better than most during the ongoing recession. SNL Kagan predicts that online ad spending will increase by 6.2 percent to $24.6 billion this year.