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Encouraging results from latest US Net Ad tracking
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26/10/00
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The Internet advertising industry in the USA is believed to have broken the
2 billion dollar mark in the second quarter of 2000. Additionally, the
$4billion revenue total for the first half of the year is approaching that
of the whole of 1999. Revenues for first versus second quarter 2000 grew by
over 8% in value terms, representing some 170 million dollars in additional
spend.
These are the key findings of the latest Internet Advertising Bureau's
/PricewaterhouseCoopers Internet Ad Revenue Report released recently. The
research is thought to be the only ongoing track of the US Internet
advertising industry. It is also unique in drawing on data compiled
directly from some 200 companies selling net ads.
Rich LeFurgy, IAB Chairman underlines the importance of the research data.
"Far from being broken, the industry is seeing very sizeable increases in
online advertising from large traditional advertisers. Importantly, the
'throw it up against the wall to see what sticks' test-type efforts are
gone, as the ad community now knows that the Internet is a market-share
driver, and the marketplace now understands that this is a brand building
and direct marketing medium."
Tom Hyland, Chair, PricewaterhouseCoopers New Media Group has noted that,
"online advertising continued to increase in the midst of a turbulent phase
of the medium's growth, and that advertising became more concentrated in
the higher profile sites and portals, signalling that the smart money is
going where the traffic is."
The report also contains detail as to the types of categories that lead
online spending at present. During the second quarter of 2000,
consumer-related advertising led at 30%, followed by computing at17%,
financial services at 15%, business services at 10 % and media at 9%. The
findings also indicate that the overwhelming number of revenue transactions
continue to be cash-based, with barter/trade and packaged deals accounting
for only some 5% of the total.
In terms of the types of ads, banners advertisements continue to be seen as
the predominate, accounting for 50 % in Q2. This is followed by
sponsorships at 27%, classified ads at 7%, referrals at 4%,
interstitials at 3%, email at 2%, rich media at 2%, and keyword searches
at only 1%.
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