WEB RATINGS BATTLE GEARS UP

By: Katy Bachman Jupiter, Media Metrix Merger Raises The Stakes



(Mediaweek)In the battle for the Internet ratings standard, Media Metrix
is banking that its $343 million stock purchase of Jupiter Communications,
which analyzes and forecasts Internet businesses, will give it a leg up over
rival Nielsen//NetRatings Inc. As Jupiter Media Metrix, the new company will
have 1,700 clients (of which 200 are common to both), compared with
NetRatings' 400.



Media Metrix CEO Tod Johnson, who will hold the same title in the new
company, said the deal provides 'cross-selling opportunities, joint product
development and international expansion.'



Analysts weren't so sure. Stocks of both companies plunged last week,
reducing the value of the deal by about $50 million. 'It's an interesting
deal, but it's not going to be easy for the companies to integrate,' said
Dana Serman, an analyst with Lazard Freres.



Agencies liked the idea of one-stop shopping. 'Our belief is that we'll
automatically get lower prices and better services,' said Rishad
Tobaccowala, president of Starcom IP. But they also questioned just how
far the product synergies could go. 'In the past, Jupiter could bounce
around and present some different thoughts.



Now they may be limited to only one perspective,' said John
Donnarumma, director of information technology for the Digital Edge.



Mary Ann Packo, Media Metrix president, insisted the goal is to keep the
ratings 'pristine.' But she added that a wealth of data collected does not
get utilized. 'How people navigate the Web, what sites they're loyal to
- that's a rich database that can be turned into other products,' said
Packo.



Meanwhile, Nielsen//NetRatings - which is owned by VNU Inc.,
parent of Mediaweek and Editor & Publisher - is
not standing still. The company last week said it will develop a custom
Internet audience panel to gather marketing and advertising intelligence
for Yahoo.



Katy Bachman is a senior editor at Mediaweek magazine.







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