Times are tough, but Spot Runner, an ad startup dedicated to using web tactics to put local advertisers on television, says its recent layoffs aren't a sign of an economic downturn.

When news broke that Spot Runner had terminated about 50 workers, many thought the two-year-old startup was in trouble. But a company spokesman told The Los Angeles Times that the layoffs are actually part of a reorganization that will include up to 60 new hires.

According to Spot Runner, the new hires will focus on serving national brand advertisers through the company's web-based television production process.

Spot Runner was originally designed to allow local companies to use the online service to produce and place television ads for as little as $499. While the company is shifting its focus, Spot Runner officials maintain that local will still be a priority.

However, Greg Sterling, an analyst with consulting firm Sterling Market Intelligence, has said that many ad firms focused solely on small businesses have suffered of late, perhaps because of a sagging economy. But the picture for local advertisers -- at least those that focus on video -- isn't as grim. Yesterday, Lehman Brothers issued a forecast predicting that the advertising market for online video would exceed $1 billion this year.