My sites have done OK w/ advertising since Fall 2008, but I'm more weighted towards PPC and CPA.<p>Web advertising has it's challenges, but it's clear that advertisers are wildly overspending on offline advertising, and that much of that spending is going to disappear.<p>I used to work for the largest web consulting shop in a small town. My accountant and other small business people would ask how much a site from us would cost: I'd say that a site with custom design and CMS would start around $2k.<p>Often they'd be shocked... They'd expect to pay more like $80.<p>The same businesses have been spending $100 a day for tiny display ads in the local newspaper... Add that up for 365 days, and you could afford rent for a modest storefront or an extra employee. You could spend less than half of that (once) and have the beginnings of an e-commerce site that would bring in recurring and measurable income.<p>Businesses are wising up and pulling their ads out of the local daily: some of that money is going to get funneled into advertising models that work for advertisers, such as PPC and CPA.