Advertising forecasts for 2007 are mixed, but just about the only constant is that Internet advertising will continue to grow apace, outperforming other media and likely, surpassing expectations. In 2006, Web spending was forecast at 20%; with three quarters now behind us, that number is closer to 50%, according to Nielsen Monitor-Plus. Even so, most research firms think Web advertising will grow somewhere between 15% and 20% next year. However, history tells us that number is most likely conservative. Since the bubble burst in the early 2000s, forecasters and some investors have erred on …

For art dealers, the Internet is becoming just another way to sell their clients' works. Renowned collector Charles Saatchi is launching a Web site specifically to house the works of art students. As art prices soar, collectors say they have less time to travel to galleries and shows to see new works. Similarly, painters and sculptors are having a hard time being seen in a fragmented and growing environment. So the Web is the best place for many artists to get their works seen. Many also participate in social networks like MySpace, but Saatchi is hoping to attract …

The Times plays down the widespread speculation that AOL is being dressed up for a sale. The paper says naming Randy Falco as CEO isn't the kind of choice Time Warner would make if it wanted to sell the company right away. Falco, for one, says, "I'm very loyal...I'm not in here for a short ride." Indeed, he spent 31 years at NBC Universal. "I can't imagine that Time Warner will want to sell or get out of AOL," he adds. But an AOL sale wouldn't necessarily be his decision either, although he would have some say in …

Microsoft is making a strategic shift to push Microsoft's Office Live to small and mid-sized businesses. Its new marketing campaign features a guy in a gorilla suit who is trying to start his own business and talk about the benefits of Microsoft's software. The online ads use floating video technology from Rovion's InPerson platform. The software giant decided to go with floating after traditional online ads didn't work. "We do a lot of marketing investments with keyword search and banners, and what you notice over time is unless you can put something very interactive and compelling, you're not …

It's the same ho-hum story for the folks at eBay. The online auctioneer is struggling to move beyond its core business. Its eBay Express Web site has been "a tough sell," says newspaper. One eBay clothier reports being excited about the new site, which lists products for sale at fixed-prices, but last month, she didn't sell a single item on eBay Express. It "doesn't seem to be any help," she said. She's not alone, either. The Professional eBay Sellers Alliance, an independent group of the site's sellers who collectively sell more than $1 billion a year …

Thanks to Google Checkout, Steve Grossberg, an online video game seller, is selling product apace. A new promotion from the Web media giant, designed to ramp up usage of its new payment service by merchants, allows Grossberg to shave $10 off any purchase over $30, which at an average cost of $50, covers just about game on any system. Sales have tripled, and best of all, Google isn't charging any processing fees until the New Year. Happy holidays, indeed--and a big ouch for eBay. The promotion means no merchant in his or her right mind wouldn't want to …

Businesses now rely on what their audience has to say. The I-am-somebody Web 2.0 phenomenon means readers are not only writers but also instructors and innovators. This, after all, is the mantra of the wiki movement. All this led Time (rightly or wrongly depending on your opinion), to name the collective "You" as the person of the year. And the demand for "You" is just getting started. Your contribution will be needed in 2007 and beyond: CNN needs your eyewitness videos, and Wikipedia needs additions to its enormous and growing catalog. Your expertise is also in demand: Yahoo …

Startup Aims to Improve Image Search The quest for the perfect image search has thus far eluded the likes of Google, Yahoo, Ask.com, and MSN. As it focus on the lucrative business of helping users find specific information, firms like Sweden-based startup Polar Rose are free to focus solely on image search technology. Unlike Google et al, Polar Rose uses 3D mapping techniques to recognize facial patterns. The others search for text tags associated with photos--so a search for Britney Spears, for example, could return a photo of someone posing like Britney Spears. Polar Rose's technology, …

eBay, like Yahoo, has thrown in the towel on its operations in China. The online auctioneer is shutting down its main Web site and choosing instead to partner with Chinese company Tom Online Inc., which will run the joint venture overseas. eBay is committing $40 million to the unnamed venture, while Tom Online will contribute $20 million. Despite putting up more money, eBay's taking a 49% minority stake in the partnership. Silicon Valley companies have struggled mightily in China. Google, the world's largest search engine, is a distant No. 2 in Web search, despite opening new operations in …

Digg, the news aggregate site, may have unveiled a new look on Monday, but it has failed to address the No. 1 problem plaguing its business: phony "diggs." The news aggregator depends on the wisdom of crowds; its users "digg" the best stories they find, but power diggers stick together. In some cases, diggs come from PR or marketing firms looking to cast their clients in a better light. Another tactic they use is to digg phony stories or press releases. The company has done its best to do away with phony digging, which is illegal …