Discovery Communications is also a standout, notable for its reality shows like the Deadliest Catch series and Animal Planet. It has been able to offer programming that attracts advertisers, and it's posted revenue growth in a tough environment, a feat credited to its highly respected ad honcho, Joe Abruzzese, whom Discovery lured away from CBS Television Networks in 2002.

In the five years through 2013, Veronis Suhler projects that spending on alternative advertising will post a compounded annual growth rate of 12.3% and expand its market share of all ad spending to 32.3% from just 5.9% five years ago. Traditional advertising, on the other hand, will show a compounded annual decline of 3.3%, bringing spending levels below where they stood in 1997. In this environment, the winners are likely to be companies along the lines of Salesforce.com (CRM) with its expertise in customer-relationship management, cable outfits such as Discovery Communications (DISCA) and Cablevision (CVC), media companies such as Time Warner (TWX), Viacom (VIA.B) and Disney (DIS), and search engines such as Google (GOOG).

Media companies rallied nicely Thursday after Goldman Sachs analyst Mark Wienkes raised his rating on the group to Attractive from Neutral, pointing out that advertising revenue at cable networks is expected to increase 6% from the level a year ago, as national advertising outpaces local advertising. Wienkes' favorite is Time Warner because of its HBO, TNT and TBS cable networks, which stand to gain from strength in national advertising. He noted, too, that Time Warner trades at a discount to the entertainment group.

National advertising is growing at the expense of local advertising, and Wieser cites entertainment companies with cable properties, such as Viacom, E.W. Scripps (SSP), Turner Networks and Discovery Communications as well-positioned to deliver specific audiences on a national level to meet advertisers' needs.

In the five years through 2013, Veronis Suhler projects that spending on alternative advertising will post a compounded annual growth rate of 12.3% and expand its market share of all ad spending to 32.3% from just 5.9% five years ago. Traditional advertising, on the other hand, will show a compounded annual decline of 3.3%, bringing spending levels below where they stood in 1997. In this environment, the winners are likely to be companies along the lines of Salesforce.com (CRM) with its expertise in customer-relationship management, cable outfits such as Discovery Communications (DISCA) and Cablevision (CVC), media companies such as Time Warner (TWX), Viacom (VIA.B) and Disney (DIS), and search engines such as Google (GOOG).

In the five years through 2013, Veronis Suhler projects that spending on alternative advertising will post a compounded annual growth rate of 12.3% and expand its market share of all ad spending to 32.3% from just 5.9% five years ago. Traditional advertising, on the other hand, will show a compounded annual decline of 3.3%, bringing spending levels below where they stood in 1997. In this environment, the winners are likely to be companies along the lines of Salesforce.com (CRM) with its expertise in customer-relationship management, cable outfits such as Discovery Communications (DISCA) and Cablevision (CVC), media companies such as Time Warner (TWX), Viacom (VIA.B) and Disney (DIS), and search engines such as Google (GOOG).

In the five years through 2013, Veronis Suhler projects that spending on alternative advertising will post a compounded annual growth rate of 12.3% and expand its market share of all ad spending to 32.3% from just 5.9% five years ago. Traditional advertising, on the other hand, will show a compounded annual decline of 3.3%, bringing spending levels below where they stood in 1997. In this environment, the winners are likely to be companies along the lines of Salesforce.com (CRM) with its expertise in customer-relationship management, cable outfits such as Discovery Communications (DISCA) and Cablevision (CVC), media companies such as Time Warner (TWX), Viacom (VIA.B) and Disney (DIS), and search engines such as Google (GOOG).

Ad agencies as a group, however, are reeling from both the changes in the industry and the severity of the global recession. Interpublic Group (IPG), WPP Group (WPP.UK), Omnicom Group (OMC) and Publicis (PUB.France) continue to restructure as a result of shrinking revenue and profits. While the worst may be over for the agencies, the environment is still risky enough that investors may be wise to focus on other segments of the ad world. As Larry Haverty, veteran retailing and entertainment analyst and manager of the Gabelli Global Multimedia Trust, puts it: "I'd prefer to bet on the companies selling stuff, rather than those specializing in the art of trying to sell stuff."