Online Ads: Goodbye to Real Growth?

SAN FRANCISCO -- Google(GOOG Quote) and Yahoo!(YHOO Quote) built their entire fortunes on the promise of a global move into online advertising.

But a sluggish economy has exposed the vulnerability of that very revenue stream -- and raised some doubt as to whether the growth levels the industry once enjoyed will ever be realized again.

Most observers agree that the dwindling wealth now seen in online advertising is a temporary byproduct of the housing crisis and high gasoline prices, which have curbed consumer spending as well as marketing budgets. Internet display ads, especially, have been hard hit as the concept of branding seems more like a luxury than a necessity when money is tight. ...