Year-over-year, the online category increased 15.1% in 2008, while rising at a compound annual growth rate of 26.8% from 2006 to 2008.

Magazines were the weakest performers, showing an 8.4% annual decline in 2008 and a decline of 3.9% on a CAGR basis over a three-year period. The strength of online is generally credited to the continued shift in ad dollars from magazines to online channels.

"Advertising dollars continued shifting from print vehicles to online outlets, as magazine net ad revenue declined," said Richard Mead, Managing Director at Jordan, Edmiston.

Online display and search advertising -- which accounts for more than 50% of total online revenue -- gained 12.4% year-over-year in 2008, and grew at a CAGR of 30.7% from 2006 to 2008.

At the same time, magazine net ad revenue declined 10.2% in 2008 versus 2007, and fell at a CAGR of 4.9% over a three-year period. Overall, B2B media revenue remained above 2006 levels in 2008, due to a 9.9% revenue increase in 2007 over 2006.

With regard to profitability, B2B media company contribution (revenue less operating expenses) declined 7.8% year-over-year in 2008, but also remained above 2006 levels in 2008, following a 14.6% contribution increase in 2007 over 2006.

Trade shows, the third-largest revenue stream for B2B media companies behind magazines and online, grew 4.3% in 2008 versus 2007, and at a CAGR of 25.4% from 2006 to 2008.

Data and conferences also showed robust revenue growth -- increasing 7.0% and 9.9%, respectively, in 2008 over 2007 and at CAGRs of 12.3% and 11.3%, respectively, from 2006 to 2008.

Custom publishing remained relatively flat in 2008 versus 2007 and across a three-year period, the report found.

This news story is important. I recommend that everyone read it.