After disappointing sales in 2007, when advertising expenditures saw the tiniest uptick of 0.2%, it looks like the first quarter of 2008 will tell the same story. According to a Wednesday report from TNS Media Intelligence, spending has risen just 0.6%.

Newspapers took the biggest hit, with ad sales falling 5.2%. Radio was not far behind, with a 4.5% drop. Even typically robust sectors of the media industry showed signs of slowing. Cable television was up only 4.1%--for all of 2007, it rose 6.5%--and Internet display advertising grew just 8.5%  - a dramatic tumble from 2007's 15.9%.

In a recent interview with Forbes, Google CEO Eric Schmidt was asked how the company - which currently relies heavily on search advertising -- will continue to profit. Schmidt noncommittally replied, "The goal of the company isn't to monetize everything. The goal of the company is to change the world."

A lofty statement - and true sentiment - but for most newspapers, it's difficult to change the world without some pocket money.

Joe Swallen, senior vice president of research at TNS Media, predicted the second quarter will continue quarter one's trend, as consumers continue to cut spending and marketers follow suit.

"Consumers are the ultimate engine behind the advertising economy," said Swallen. "As long as the current economic situation is as pessimistic or cautious as it is, it's unlikely there's going to be a resumption of robust spending."

Sources: Crain's New York through IwantMedia, Forbes