Search advertising remains strong, but a weak economy and tight budgets has prompted many advertisers to cut back on display.

According to a Wall Street Journal (subscription) story, display may see only half the revenue that will go to search this year.

If that projection holds, it could be bad news for companies like Yahoo, AOL and Microsoft, which compete heavily for search dollars. As for Google, the company has been trying to up its display holdings, most recently by selling more ad space on its YouTube property. 

But for Greg Sterling at Search Engine Land, the notion that display will be half of search is "too pessimistic."

According to Sterling, many brand marketers still labor under the misperception that search is not a branding tool. If that is the case, says Sterling, the decision to cut display -- a format seen as a strong branding tool -- in favor of search would seem to mean that marketers have responded to a down economy with rather irrational behavior. In other words, belt-tightening on the branding front may account for a drop in display, but in reality, marketers may still be paying for branding in the search market.

But a weak economy isn't an industry-wide phenomenon (yet). Consider the case of the presidential race. According to a recent article in USA Today, Google has reported strong growth in search ads bought by both Republicans and Democrats. Similarly, ClickZ is reporting that Democratic nominee Sen. Barack Obama's campaign in particular has been spending heavily on digital, in both display and search. The Obama camp has made steady use of digital, having used the internet as a fundraising and organizing tool. Last month, Obama also took the unprecedented step of announcing his choice for VP via text and email to his supporters.