Search advertising grew at a rate of 10% in the fourth quarter, while display advertising declined by 7%, IDC found.
Classified ads were hardest hit in the online advertising space, declining by 18% in the fourth quarter.
“All of this does not bode well for the current first quarter,” IDC stated in the report. “U.S. online ad spending may very well experience a decline in 1Q09, and perhaps also in 2Q09.”