Online advertising revenue fell nearly 8 percent from a year-earlier to $3.76 billion due to the softening economy, the Interactive Advertising Bureau said in a report Monday.
The softness has weighed on Internet and media companies and analysts have said the recent attacks on New York and the Pentagon will likely make the situation worse.
Several investment firms have slashed their growth forecasts for even leaders in the industry, including AOL Time Warner and Yahoo, and several media giants such as Viacom and USA Networks warned their revenues or earnings would take a beating.
However, the trade group said online advertising was stronger in the last six months than spot television, national spot radio and Sunday newspapers. --Reuters