An efficient compression algorithm for short text strings
Huffman has a static cost, the Huffman table, so I disagree it's a good choice.
There are adaptative versions which do away with this, but the compression rate may suffer. Actually, the question you should ask is "what algorithm to compress text strings with these characteristics". For instance, if long repetitions are expected, simple Run-Lengh Encoding might be enough. If you can guarantee that only English words, spaces, punctiation and the occasional digits will be present, then Huffman with a pre-defined Huffman table might yield good results.
Generally, algorithms of the Lempel-Ziv family have very good compression and performance, and libraries for them abound. I'd go with that.
With the information that what's being compressed are URLs, then I'd suggest that, before compressing (with whatever algorithm is easily available), you CODIFY them. URLs follow well-defined patterns, and some parts of it are highly predictable. By making use of this knowledge, you can codify the URLs into something smaller to begin with, and ideas behind Huffman encoding can help you here.
For example, translating the URL into a bit stream, you could replace "http" with the bit 1, and anything else with the bit "0" followed by the actual procotol (or use a table to get other common protocols, like https, ftp, file). The "://" can be dropped altogether, as long as you can mark the end of the protocol. Etc. Go read about URL format, and think on how they can be codified to take less space.
I don't have code to hand, but I always liked the approach of building a 2D lookup table of size 256 * 256 chars (RFC 1978, PPP Predictor Compression Protocol). To compress a string you loop over each char and use the lookup table to get the 'predicted' next char using the current and previous char as indexes into the table. If there is a match you write a single 1 bit, otherwise write a 0, the char and update the lookup table with the current char. This approach basically maintains a dynamic (and crude) lookup table of the most probable next character in the data stream.
You can start with a zeroed lookup table, but obviosuly it works best on very short strings if it is initialised with the most likely character for each character pair, for example, for the English language. So long as the initial lookup table is the same for compression and decompression you don't need to emit it into the compressed data.
This algorithm doesn't give a brilliant compression ratio, but it is incredibly frugal with memory and CPU resources and can also work on a continuous stream of data - the decompressor maintains its own copy of the lookup table as it decompresses, thus the lookup table adjusts to the type of data being compressed.
Check out Smaz:
Smaz is a simple compression library suitable for compressing very short strings.