• The Wall Street Journal, Thursday, September 4, 2008 11:32 AM

Online advertising continues to post healthy gains, but only a few at the very top are benefiting, The Wall Street Journal reports. Even though Web spending grew 20% in the U.S. in the second quarter, and growth forecasts remain strong in spite of a weak economy, the gap between online advertising's haves and have-nots is widening, the report says. In fact, the gap between search advertising giant Google, which sits at the very top of the online ad pile, and Microsoft, Yahoo and AOL is widening, too, as advertisers continue to favor simple search ads over display.

Indeed, in the face of a slowing economy, advertisers are sticking with search, Google's undisputed domain. According to eMarketer, search spending is set to hit $10.4 billion this year, double what will be spent on display ads. And the Journal report says not to expect a comeback from display anytime soon, either. It seems the introduction of newer and better display targeting technologies is having little effect on advertisers.

In a tight economy, the notion, "We have to be a little more thoughtful about how we spend our money," prevails. As Mark Scholz, global search manager for Hewlett-Packard Co.'s printer division, says, his company's ad budget might be flat, but, "In the event there are budget cuts, I am one of the last ones they go after."

Read the whole story at The Wall Street Journal »