All across these crazy interwebs, I’ve been reading report after report of doom-and-gloom for online advertising companies.  A couple weeks ago I saw Glam Media change their payout process.  Since then, various sites have reported that even the big search engines are losing steam.

While TechCrunch reports a massive slow-down in growth for the “Big 3″ (Google, Yahoo, Microsoft grew only 0.6% from Q2 to Q3), we actually saw something quite different at Chitika – 200% growth from May – October.

Over these 5 months, our publisher base has actually doubled from 17,000-34,000, and in October we served 550 million search-targeted ads (out of over 2 billion total ad impressions) .  To put this in perspective, Ask.com (the world’s 5th-largest search engine) did 364 million search queries according to the August 2008 ComScore reports, meaning that our network almost doubled their amount of search traffic in October.

This leads to the question: Why is Chitika seeing this growth?  2 words:  Ad-Targeting.