Nonetheless, the IAB called the growth rate in the first half of 2008 “strong” considering the economic upheaval and its detrimental effect on the advertising industry.

The good news for Mountain View, California’s Google is that search advertising not only remained the largest ad format but actually increased its piece of the spending pie from 41% in the first half of 2007 to 44%. Display ads, such as banners, digital video, and rich media, accounted for 33% of the spending, increasing their market share one percentage point. The classifieds format saw its pie shrink from 17% to 14% of the total.

The high-growth online advertising climate had a direct result in the development of a new generation of community-focused, web-hosted services like video and photo sharing, online music streaming, blogging, wikis, syndicated feeds, social networks, and social news, according to IDG.

Many of these Web 2.0 services that were originally designed for and adopted by consumers are now finding their way to the workplace, where they are being applied to a variety of processes like sales, marketing, customer support, and internal communication and collaboration.

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