The JPMorgan equity research team recently released a 312-page report titled "Nothing But Net," with their predictions for future trends in e-commerce, online advertising and virtual worlds, expressing optimism on the online graphics market. On the other hand, they noted a "bottoming out" in certain ad pricing because of the massive availability of non-premium ad space credited to sites like MySpace and Facebook.

Still, the report looks ahead to a maturation of technology, and JP Morgan says that with the growing failure of portals to reach their target audience, interactive online solutions and more creative social spaces will see continued growth that keeps pace with advertisers' needs.

The report highlighted Disney's acquisition of Club Penguin in particular as evidence that kid-focused virtual worlds are continuing to grow at a fast clip -- but the researchers are not as optimistic about these kinds of products for adults.

States the report, "We are bullish on sites for children. Virtual worlds present parents an opportunity to let their kids play online and interact in a closed environment that is perceived as safe, especially when sites are operated by companies with trusted brands. We think sites aimed at adults have yet to prove mainstream appeal."