AOL, LookSmart Harbinger Of Ad Weakness

While Google's shares skate above $700, troubling results at smaller online ad competitors hint at a turbulent future.

There wasn't much good news for LookSmart, which disclosed its revenue had increased a meager 4 percent year over year for the third quarter.

Henry Blodget at New York Times tied AOL's declaration of continued downward pressure on ad revenues to AOL's Advertising.com losing a major ad client. He identified that client as online educator University of Phoenix, a ubiquitous online advertiser that has purchase the Aptimus ad network.

There have been little tremors throughout online advertising, especially with the woes of the real estate market hammering lenders, and the ad spends they make in turn. Yahoo has noted them, in particular.

Is it a plastic teacup landing on a carpet in terms of impact on the online ad business, or the inescapable entropic nature of the universe exerting a cold grip on the heart of the industry? People will be watching the smaller ad players, certainly, but they will keep an eye on Google too.