By: Staff Reports
Web Companies Dominate Online Advertising
by Ann M. Mack
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