NEW YORK, December 4, 2000 - Although holiday online advertising activity this season is nearly four times what it was last year, online advertisers are off to a slower start, according to a report released today by AdRelevance, a Jupiter Media Metrix company (NASDAQ: JMXI) and innovator in next-generation Internet advertising measurement technology. The AdRelevance Report reveals that while the number of retailers advertising online this season (2313) almost quadrupled from 1999 (657), ad impressions are growing slower, total median impressions per retailer are down and the number of holiday-themed ads in October 2000 is less than half of what it was last year.
Key findings from the latest AdRelevance Holiday 2000 Intelligence Report, which tracks and analyzes all holiday-related online advertising from October 2000 through mid-November 2000, include:
- Online holiday ad impressions and spending by retailers did not post gains above last year until the second week of November 2000.
- Due to the significant increase in total retail advertisers, total median online ad impressions per retailer were down 82 percent in October 2000 - falling from 130,000 impressions in 1999 to 23,000 this season.
- Only five of last year's top 10 holiday advertisers show up in this season's rankings: Ubid, Yahoo!, eBay, barnesandnoble.com and Amazon.com.
- Although their rankings are reversed, "books, music & movies" (#1 this year) and "auctions" (#2 this year) are still the top two most promoted retail products on the web. Unseating "toys" and "office equipment and supplies" in this year's top 10 advertised retail products are "gifts & party supplies" and "flowers."
"Despite high levels of holiday-related online advertising this season, it is becoming clear that retail advertisers are starting a little later this year. The truth of the matter is that seasonal online advertising impressions and expenditures grew faster in 1999 than 2000, through about mid-November," said Charles Buchwalter, vice president of media research for AdRelevance. "It's interesting to note too that during the first six weeks of the fourth quarter, only 14 companies - out of roughly 2700 retail online advertisers - made up 50 percent of all retail online ad impressions."
| Table A: |
Growth in Retail Ads and Impressions October 1999 vs. October 2000 |
| Source: AdRelevance, a Jupiter Media Metrix company |
| Metric |
1999 |
2000 |
%Change |
| Number of retailers advertising |
657 |
2313 |
+252% |
| Average number of ads per company |
9.3 |
7.8 |
-16% |
| Median ad impressions per company |
130,000 |
23,000 |
-82% |
| Number of holiday-themed ads |
54 |
22 |
-59% |
| Table B: |
Top 10 Retail Advertisers in 2000 October and First Two Weeks of November |
| Source: AdRelevance, a Jupiter Media Metrix company |
| Rank 2000 |
Rank 1999 |
Company |
Share 2000 |
Change in Share vs 1999 |
| 1 |
1 |
Amazon.com |
15% |
8% |
| 2 |
6 |
barnesandnoble.com |
13% |
9% |
| 3 |
2 |
Ebay |
5% |
0% |
| 4 |
10 |
Yahoo! |
4% |
2% |
| 5 |
218 |
RedEnvelope Gifts Online |
3% |
3% |
| 6 |
7 |
Ubid |
3% |
-1% |
| 7 |
36 |
1-800-FLOWERS.COM |
2% |
2% |
| 8 |
N/A |
Best Buy |
2% |
N/A |
| 9 |
205 |
Corbis |
2% |
2% |
| 10 |
281 |
RadioShack |
2% |
1% |
| Table C: |
Top 10 Retail Products Promoted in 2000 October and First Two Weeks of November |
| Source: AdRelevance, a Jupiter Media Metrix company |
| Rank 2000 |
Rank 1999 |
Product Segment |
Share 2000 |
Change in Share vs 1999 |
| 1 |
2 |
Books, Music & Movies |
17% |
1% |
| 2 |
1 |
Auctions |
12% |
-4% |
| 3 |
11 |
Gifts & Party Supplies |
6% |
4% |
| 4 |
8 |
Cameras & Electronics |
5% |
1% |
| 5 |
5 |
Computer Hardware & Accessories |
4% |
-1% |
| 6 |
3 |
Sports Travel & Leisure Gear |
3% |
-4% |
| 7 |
16 |
Flowers |
2% |
1% |
| 8 |
7 |
Software & Video Games |
2% |
-2% |
| 9 |
9 |
Cards |
2% |
-1% |
| 10 |
4 |
Drugs & Remedies |
2% |
5% |
Who's Leading the Charge?
Although Amazon.com once again leads the holiday online advertising charge in 2000, strong competition is riding on its heels (see Table B above):
- Barnesandnoble.com, which ranked six last year among top holiday online retail advertisers, increased its share of the online ad pie by nine percent - becoming the second largest online holiday advertiser.
- Announcing they would start online advertising early this season to encourage early shoppers, BestBuy.com posted one of the strongest online ad gains, becoming the number eight advertiser this year. Last year, BestBuy.com did not run an online campaign until late December.
Top 1999 online retail advertisers not ranked in the top 10 this year include: BUY.com, Vitamins.com, Beyond.com, Drugstore.com and Office Depot.
"While the latest AdRelevance data does not define the final outlook for the 2000 holiday season, it does suggest that by starting slow, retailers do not seem to have learned much from last year's holiday online advertising lessons," Buchwalter said.
A complete version of this AdRelevance Intelligence Report, titled "The Past, Present and Future of Online Holiday Retail," can be viewed at intelligence.adrelevance.com and includes compelling ad metric charts and graphs as well as additional analytic insights on the findings. For more information on AdRelevance 2.0 - the brand new second-generation online ad measurement service from AdRelevance - and a free demo or trial, please visit www.adrelevance.com or call 1-888-649-6540.
| Definitions |
| Impressions: |
The number of times an ad is rendered for viewing. One impression is equivalent to one opportunity to see an ad. |
Editors Note: Unless otherwise noted, please source all data as the following: AdRelevance, a Jupiter Media Metrix company
About AdRelevance, a Jupiter Media Metrix company
AdRelevance, a Jupiter Media Metrix company, is an innovator in Internet advertising measurement and ad tracking technology. The company's advanced intelligent agent technology systematically and continuously scours the commercial Web universe, collecting online advertisements from more than half a million URLs. With data on hundreds of thousands of unique ads, representing more than 15,000 advertisers, the innovative AdRelevance service provides advertisers, agencies, media companies, marketers and financial analysts with critical information that tells them where, when and how competitors and potential clients are advertising on the Internet. Visit us at www.adrelevance.com for more information.
About Jupiter Media Metrix
Jupiter Media Metrix, formed by the merger of Jupiter Communications and Media Metrix, is a global leader in market intelligence for the new economy. The Company delivers innovative and comprehensive Internet measurement, analysis, intelligence and events to provide businesses with unmatched global resources for understanding and profiting from the Internet. Jupiter Media Metrix brings together world-class, innovative and market-leading products, services, research methodologies and people. Jupiter Media Metrix brands include Media Metrix, AdRelevance, Jupiter Research and Jupiter Events. The Company is headquartered in New York City and operates worldwide, across the Americas, Asia Pacific, Europe (as Jupiter MMXI Europe), and the Middle East. Visit us at www.jmm.com for more information.