Google ads fate in economic downturn

Triggered by Om’s post today, I’m still undecided about what happens to on-line ads, in particular what happens to the big gorilla, Google ads, in this new era of economic Armageddon.

On the one hand, I tell myself Google’s ad business will be hurt badly because companies will be cutting back.

On the other hand, one could also argue that with layoffs, and more people having to resort to working from home etc. Google offers the only low barrier to entry option, so Google advertising will increase like never before.

What do you think?