The old newspaper model is "dead man walking," according to biz journalist Bill Richards. Newspapers "haven't had to innovate for 100 years," said publisher of the Stranger, Tim Keck, and therein lies the problem.

Online remained one of the few bright spots, as display spending grew 7 percent versus the first three quarters of 2007.

Forrester found that 16% of the people who read company blogs trust them—less than every other form of content they asked about, including print media, direct mail, even corporate emails.

Publicis’ ZenithOptimedia Group has a sunnier forecast, with predictions that online ads will grow 18% in 2009.

Today's opening keynote at the Add-on-Con conference in Mountain View CA highlighted the similarities between monetizing add-ons and monetizing Web sites. Although distribution channels and products differ, according to moderator Jeremy Liew of Lightspeed Venture Partners, in general add-ons generate revenue through: "search, advertising, affiliate type commerce and APIs."

With the economy in a slump and budgets being cut in traditional print and TV advertising campaigns many will be looking to the Web 2.0 world to reach their constituents. So what should be on your Web 2.0 radar for 2009? Web 2.0 gurus give you the low down.