We've put three quarters behind us in 2009, and the most recent one was merely another miserable step downward for the beleaguered newspaper industry. Total ad revenue plummeted in the third quarter to $6.4 billion for the print jockeys, a decline of 28%. This info from the Newspaper Association of America drives home the notion that conditions will only worsen for the newspaper industry. So, if you're hoping those shares of New York Times Company (NYT), Gannett (GCI) and Washington Post Company (WPO), holding your breath will leave you little more than dizzy.

Of the total advertising revenue generated in the third quarter of 2009, $5.8 million came from print, the lowest quarterly amount this year. The $623 million in online advertising sold by America's newspapers was also 2009's worst. Both are down substantially from the same quarter in 2008, when the newspapers posted print ad revenue of $8.2 million and online ad revenue of $750 million, according to NAA data. At this time last year, we lamented year-over-year declines approaching 20%. Now, we have the same feelings as ad revenue drops approach 30%.

The number two search engine in the United States turned in a fantastic third quarter, far ahead of expectations. Cost-cutting, layoffs and business divestitures led to a surge in Yahoo's (NASDAQ: YHOO) profits and a 4.8% increase in share price in extended trading on Tuesday evening. Net income more than tripled to $186.1 million (13 cents per share) from the third quarter of 2008's result of $54.3 million (4 cents a share). Sales (exclusive of fees passed to partner sites) reached $1.13 billion, slightly above the $1.12 billion expected by analysts, according to a Bloomberg survey.

With the advertising market in rough shape and competition from Google (NASDAQ: GOOG) continually rising, Yahoo refocused on its core properties: the home page, messaging and mobile services. The company trimmed what it didn't need, which is why it was able to boost its earnings even with a decline in revenue. Increased ad revenue from auto manufacturers, travel companies and consumer product manufacturers also helped.

Yahoo's chief financial officer, Timothy Morse, says that the company's markets are "starting to stabilize." Of course, Yahoo itself must be doing something right: its share price is up 41% this year.

According to a Reuters story, Microsoft Corporation (Nasdaq: MSFT) is thinking about launching a free online word processor and spreadsheet suite. The business model would be based on ads.

After all, Google is making headway with its own applications – Writely and its new spreadsheet. Of course, there are other upstarts offering online suites.

Interestingly enough, Microsoft may use one of its old products (which has had little traction over the years): Works. This is desktop software that is usually pre-installed on new PCs.

This is definitely a tricky thing for Microsoft. The problem, of course, is protecting the Office monopoly, which accounts for about a quarter of Microsoft's revenues.

Why pay for it if there is a free version?

The good news is that – at least for the business market – its hard to see an ad-model working. Do businesses want their employees to get bombarded by ads? Probably not.

But the consumer market is big, too. And with the competition from Google and others, it looks like revenues could get light on this side of the Office business.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

I knew Nielsen didn't formally track the viewership of TV commercials as part of its television ratings, but somehow, I didn't know it. It seems like an obvious win -- after all, ever since the days when VCRs reared their 12:00-blinking heads in the world's living rooms (and don't even get them started on TiVo), broadcasters have been wondering whether people were watching commercials.

Well here you are, Nielsen: I watch TV ads, and so do my children, so they can nag me. But you'll know that soon, as you're about to start formally breaking out commercial breaks in the TV numbers you report. Everyone's expecting, of course, to see that viewership declines sharply during advertisements. And the natural evolution of the negotiation strategy: advertisers will start asking to pay less for their 30 seconds' worth of that reduced number of eyeballs. Money will flow away from the TV breaks and toward that other, far more measurable medium: the internet.

Or will it? So many advertisers have already made their mark by liberally sprinkling their products throughout the plots of your favorite shows. Take Kyle XY, the ABC Family show I've become addicted to. Kyle and his "brother" use Sour Patch Kids as currency. Watched the Hallmark Channel original movies recently? Boy have I never seen such loving treatment of an automobile. The camera loves the minivan ...

And isn't the "get up at the commercial and get a snack" contingent already calculated into the equation when advertisers decide how much they'll pay?