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Dot Com Advertisers Outnumber Traditional Advertisers Online Two To One, Reports AdRelevance Division Of Media Metrix

Dot com advertisers account for largest number of companies and biggest share of online ad impressions

Web media, retail and business-to-business industries dominated by dot com advertisers

New York - September 5, 2000 - Although traditional companies are paying more attention to online advertising, dot com advertisers outnumber traditional advertisers online two to one, according to a new report released today by AdRelevance, a division of Media Metrix (NASDAQ: MMXI) and an innovator in Internet advertising measurement technology.

Key findings from the AdRelevance Special Report, which analyzes the Top 200 online advertisers in the second quarter of this year and compares dot com companies to traditional businesses, include:

  • The percentage of dot com advertisers in the Top 200 rankings increased from 54 percent in July 1999 to 68 percent in June 2000.
  • Dot com companies are committing a greater percentage of online ad impressions: 108 dot coms committed 64 percent of the Top 200's ad impressions in July 1999; while, in June 2000, 138 dot coms committed 75 percent of the impressions.
  • While dot com advertisers outnumber traditional advertisers when looking at all industries combined, the story is not quite the same when the trend is examined across individual industries: Web media, retail and business-to-business industries are dominated by dot com advertisers, with 85 percent, 74 percent and 61 percent of the Top 200 online advertisers being dot coms, respectively. Traditional advertisers, however, populate travel (76 percent), software (84 percent), hardware and electronics (97 percent) and consumer goods (97 percent) industries.

"With the market's recent performance and the increased pressure for dot coms to turn profits, it's interesting to see that the clear majority of the AdRelevance Top 200 Online Advertisers are dot com companies. According to the latest AdRelevance data, dot com advertisers account for 68 percent of companies and 77 percent of ad impressions among the Top 200 Online Advertisers," said Charlie Buchwalter, vice president of media research for the AdRelevance division of Media Metrix. "When compared to traditional advertisers, the average dot com appears to be spending more aggressively, typically even outspending traditional advertisers."

Table A: Share of Impressions by Industry, Second Quarter 2000
Source: AdRelevance, a division of Media Metrix
Industry Share of all Impressions Share of Top 200 Difference
Web Media 37.1% 42.5% 5.4%
Financial Services 15.3% 18.7% 3.4%
Software 2.9% 4.1% 1.2%
Hardware & Electronics 1.9% 1.3% -0.6%
Travel 3.1% 2.3% -0.8%
Automotive 1.3% 0.4% -0.9%
Entertainment 2.2% 1.2% -1.0%
Telecommunications 4.0% 2.8% -1.2%
Retail 22.7% 21.3% -1.4%
Business-to-Business 6.5% 5.0% -1.5%
Consumer Goods 2.7% 0.3% -2.4%

Table B: Percent of Dot Com Advertisers by Industry, Top 200 Companies
Source: AdRelevance, a division of Media Metrix
Industry Percent Dot Com Advertisers
Web Media 85%
Retail 74%
Business-to-Business 61%
Entertainment 57%
Telecommunications 46%
Financial Services 41%
Travel 24%
Software 16%
Automotive 10%
Hardware & Electronics 3%
Consumer Goods 3%

Table C: Percent of Dot Com Impressions Placed by Industry, Top 200 Companies
Source: AdRelevance, a division of Media Metrix
Industry Percent Dot Com Impressions
Web Media 91%
Software 86%
Travel 80%
Business-to-Business 74%
Retail 74%
Telecommunications 69%
Financial Services 63%
Entertainment 52%
Hardware & Electronics 23%
Automotive 15%
Consumer Goods 2%

While dot com advertisers might not account for the majority of companies advertising online in the top rankings by industry, the few companies that are in the Top 200 dominate ad spending in some instances. For example, although only 32 of the Top 200 software advertisers are dot coms, they account for 86 percent of all impressions within the industry. Similarly, 48 of the Top 200 travel companies are dot coms and account for 80 percent of all travel advertising impressions placed by the Top 200 travel advertisers.

"Despite the overall dominance of dot com advertisers, traditional advertisers have managed to stake a claim in some industries" Buchwalter said. "There's no doubt in my mind that as traditional businesses become more comfortable with online advertising, they will begin to spend more of their budgets on the Internet - in fact that's probably the next wave we'll see hit the online ad industry. But, until that day comes, dot coms are in the driver's seat."

A complete version of this AdRelevance Special Report, titled "Dot Coms in the Driver's Seat," 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 and a free demo or trial of the service, please visit www.adrelevance.com or call 1-888-649-6540. The Report was presented at the recent Camp Interactive marketing summit in Lake Tahoe, California.

Definitions
Impressions: The number of times an ad is rendered for viewing. One impression is equivalent to one opportunity to see an ad.
Dot Com Advertiser: Any company that originated on the Internet or whose existence is dependent on the existence of the Internet.

AdRelevance Special Reports
AdRelevance Special Reports are released periodically and are designed to provide customers, news media and industry watchers with a timely perspective on the rapidly changing landscape of online advertising. AdRelevance Special Reports are compiled by the company's Media Research Group, who analyze data collected from AdRelevance's proprietary ad tracking service. Each member of the team brings industry-specific expertise to their analyses as well as an understanding of marketing strategies and Internet technology.

About AdRelevance, a division of Media Metrix
Media Metrix, Inc., with more than 900 clients, is the leader and pioneer in Internet and Digital Media measurement and the industry's source for the most comprehensive, reliable and timely audience ratings, e-commerce, advertising and technology measurement services. Through its acquisition of AdRelevance, the innovator in Internet advertising measurement technology, the company offers intelligence data on where, when, how and how much web marketers and their competition are advertising online. Reporting actual audience usage behavior for more than 21,000 websites and online properties with its state-of-the-art real-time meter, and using AdRelevance intelligent agent technology to comb thousands of unique URLs for Internet advertisements, Media Metrix helps online and traditional businesses, web marketers, web publishers, ad agencies and financial analysts gain a better understanding of the digital marketplace. Media Metrix has worldwide operations in Australia, Canada, France, Germany, Japan, Latin America, Sweden and the U.K. For more information on AdRelevance and a free trial of the service, please visit www.adrelevance.com or call 1-888-649-6540. Additional information about Media Metrix can be found at www.mediametrix.com.

Editors Note: Unless otherwise noted, please source all data as the following: AdRelevance, a division of Media Metrix.

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For additional information:

AdRelevance
Ryan Oettinger
212.329.6393
roettinger@adrelevance.com

 
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