Matthew Schwartz did a reconnaissance at the recent ad:tech confab in New York. He spoke with vendors, media buyers and industry thoughtleaders about the major challenges facing advertisers and ad solution providers, online media trends, including social media, and growth strategy in the global cooling environment of 2009.

According to Chuck Richard, lead analyst at Outsell, “We’re at a stretch stage now in online advertising. While there is enthusiasm from both buyers and sellers, the agencies say 2009 and 2010 are not the years for experiments.”

The economy is too weak for those spending ad dollars to take a lot of risks. Fortunately, online risks can be taken with relatively small budgets. It’s also a buyers market. Buyers are seeing competitive rates from publishers.

Social media, the buzz-word of 2008, is cost effective. It can create powerful opportunities. Advertisers can access demographic information about each user on a social media web site. Advertisers can leverage social networks to target people’s friends as well. Install any advertiser supported facebook widget and the first thing it asks is whether it can import your friend list so you can share, for example, your Absolut Vodka cocktail mixes with them.

There is so much that advertisers can do online that is economically feasible that wasn’t available before, such as tracking users, knowing where they are, where they’ve been, drawing a picture of their interests and what is motivating them, and reaching them globally, which print cannot do. Touching people at the right time and the right place is now possible.

The downside is that delivering the right message to the right person at the right time requires a lot of rocket science and analytics behind the scenes to make it happen. Hopefully some of the 352 vendors at ad:tech will help on that front.

The mistake to make with all these online tools is to get enamored with the tool, rather than to see the tools for what they are. Advertising is all about making a connection between a consumer and a brand.

Old schoolers such as Chuck Richard ask, “Where is the emotion in digital marketing? People are more hung up on the tools rather than connecting people to a brand. Think of how the Obama campaign touched people on an emotional level.”

As an industry, we have to move beyond the fascination with the technology, the old “flash for flash’s sake” syndrome of the early part of the decade.

In what will surely be a brutal year for advertising, at least online ad solution providers can sleep better than their offline brethren knowing that a larger portion of dwindling ad budgets will be spent online.

So where do the vendors see their respective growth strategies?

Matt Goddard, CEO, R2integrated, is looking for a technology tool set to buy, maybe a small analytics company that helps with targeting and return on investment analytics. Others, such as Adam Kerr, VP North America, Bango are looking to grow organically.

Thanks to those who spoke to us, including:

• Daniel Yomtobian, CEO ABCsearch.com
• Dave Wengel, GM Interactive Markets, TargusInfo
• Dana Todd, CMO Newsforce
• Jim Shilale, VP Business Development, 2ergo
• Bob Hale, Sr. VP Corporate Development, Alterian
• Kevin Barenblat, CEO & Co-founder, Context Optional
• Angela Lauria, General Manager, Commission Videos
• Mark Nagaitis, CEO, 7 Billion People
• Matt Goddard, CEO, R2integrated
• Adam Kerr, VP North America, Bango