By: Staff Reports

Web Companies Dominate Online Advertising

by Ann M. Mack

(Adweek IQ)

Despite an increased focus by traditional companies on Internet

advertising, dot-com advertisers still outpace their bricks-and-mortar

brethren online two to one, a report released Tuesday by AdRelevance,

division of Media Metrix, said.

The report, which analyzed the top 200 online advertisers in Q2 2000,
found that 68% of Internet advertisers were dot-com companies, up 14%
from last year. Further, 138 dot-coms were responsible for 75% of the
ad impressions in June 2000 versus a year ago, when 108 dot-coms
committed 64% of the ad impressions.

While dot-coms, in their cost-cutting measures, have shied away from

traditional advertising, they continue to rely on the Web to relay their

message, said Marc Ryan, an analyst for the Seattle-based Internet

measurement firm. ‘It makes sense. [Dot-coms] understand the model and
they understand the benefits of it,’ he said. ‘It points to how dot-coms embrace the Web and use it as a primary source of advertising.’

According to the study, Web media, retail and business-to-business

industries are dominated by dot-com advertisers, with 85%, 74% and 61%

respectively. On the other hand, traditional advertisers populate the

travel industry (76%), software (84%), hardware and electronics (97%)
and consumer goods (97%) industries.

As traditional companies become more comfortable with the Internet, Ryan

predicts that more will adopt the Web as a viable advertising alternative.

‘It has proven to be successful in building brand awareness, building

purchasing intent and it also has the direct marketing component.’


(c) Copyright 2000, Editor & Publisher

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