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Family-Focused Online Advertising On The Upswing While Advertising To Children Declines, Reports AdRelevance Division Of Media Metrix

Online advertising by companies targeting families grew 96 percent, while advertising by businesses targeting children declined 56 percent

Lion's share of ads targeting children and families reside on broad-reach portals

New York - September 11, 2000 - Even though online advertising by businesses targeting families and children grew steadily through the first quarter of this year, advertisers wanting to reach kids online are shifting their focus away from children and on to families, according to a new report released today by AdRelevance, a division of Media Metrix (NASDAQ: MMXI) and an innovator in Internet advertising measurement technology. Online advertising by businesses targeting families grew 96 percent between May 2000 and August 2000, while advertising by companies targeting children declined 56 percent in the same period.

Key findings from the latest AdRelevance Intelligence Report, which analyzes standard 468x60 banner ad campaigns of 183 child and family-focused online advertisers between January 2000 and August 2000, include:

  • A majority of ad impressions for child and family-focused online advertisers run on relatively few kinds of sites - portals, kids and family sites.
  • With only 4.6 percent fewer online ad impressions, child and family sites are almost as popular as portals for child-focused advertisers. Among family-focused advertisers, however, the child and family genre is a distant second to portals, hosting 22.5 percent fewer banner impressions. These findings suggest that child-focused advertisers concentrate their impressions on fewer sites than do advertisers targeting the family audience.
  • While the most popular portals for child-focused advertisers are MSN (13.62 percent share of impressions), Netscape (12.97 percent) and Yahoo! (8.43 percent), family-focused advertisers prefer Yahoo! (27.07 percent share of impressions), AOL.com (12.28 percent), Go.com (6.92 percent) and Altavista (5.35 percent).
  • Television, entertainment and movie advertisers account for 30 percent of all impressions on kids and family Web sites, while department stores, pet supply vendors and toy retailers account for a combined 19 percent of impressions, suggesting that building retail opportunities among the child and family audiences is important to advertisers.

"The shift that we're seeing in child and family advertising online might be tied in part to the recent FTC privacy guidelines. It's safe to say that companies have learned to tread lightly as they seek to target younger generations," said Charlie Buchwalter, vice president of media research for the AdRelevance division of Media Metrix. "Clearly, the latest AdRelevance data suggest a reallocation of online ad dollars from the child to the parent."

Table A:
Growth/Decline in Advertising to Families and Children
Rolling Four Weekly
Source: AdRelevance, a division of Media Metrix
Week Beginning Kids (Impressions '000) Families (Impressions '000)
1/24/2000 15,000 15,750
2/7/2000 14,000 15,750
2/21/2000 15,750 13,500
3/6/2000 17,250 15,500
3/20/2000 17,750 15,500
4/3/2000 19,750 18,000
4/17/2000 16,750 20,250
5/1/2000 17,250 18,750
5/15/2000 18,500 18,250
5/29/2000 15,375 18,750
6/12/2000 12,375 25,250
6/26/2000 11,425 25,000
7/10/2000 10,175 19,500
7/24/2000 8,625 26,500
8/7/2000 8,425 35,000
8/21/2000 7,575 36,750

Table B:
Share of Impressions by Type of Advertiser on Kids & Family Sites
May 2000 - July 2000
Source: AdRelevance, a division of Media Metrix
Type of Advertiser Percent Share of Impressions
Department Stores 13%
Television 12%
Entertainment Sites 12%
Family Sites 7%
Online Community Sites 7%
Kid's Entertainment Sites 5%
Investment Services 5%
Food & Beverage Manufacturers 4%
Pet Supply Vendors 3%
Toy Retailers 2%
Other 30%

Table C:
Top 10 Sites Hosting Kids Advertising
May 2000 - July 2000
Source: AdRelevance, a division of Media Metrix
Site Percent Share of Impressions
MSN 13.62%
Netscape 12.97%
Yahoo! 8.43%
MaMaMedia 7.13%
Disney 5.45%
Lycos 5.32%
Zeeks.com 5.25%
Genealogy.com 4.28%
Cartoon Network 3.57%
GO 3.44%

Table D:
Top 10 Sites Hosting Family Advertising
May 2000 - July 2000
Source: AdRelevance, a division of Media Metrix
Site Percent Share of Impressions
Yahoo! 27.07%
AOL.com 12.28%
Disney 10.39%
GO 6.92%
AltaVista 5.35%
Blue Mountain Arts 5.35%
Theglobe.com 4.41%
BabyCenter 2.11%
Discovery Channel Online 1.70%
Excite 1.61%

Although the overall industry trend is to target parents, not all advertisers are switching all impressions to fully target the parental audience. In fact, Fleet Bank recently ran a unique campaign to reach both parents and children, hoping to drive traffic to Fleetkids.com. While the ad banners focus on building the Fleet brand as a source of knowledge for children to learn how to become financially responsible, the campaign also helps parents educate their children on the responsibilities that go with money.

"The latest AdRelevance analysis suggests that advertisers wanting to reach the child and family audiences are going to great lengths to protect children by ensuring that advertising content is easily differentiated from site content," Buchwalter said. "We're seeing more and more ads on these sites flagged with text or graphics to make it clear to both parents and kids that banners are paid advertisements."

A complete version of this AdRelevance Intelligence Report, titled "The ABCs of Advertising to Kids Online," 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.

Definitions

Impressions: The number of times an ad is rendered for viewing. One impression is equivalent to one opportunity to see an ad.

Genre: Exclusive groups of sites similar in content and function.

Site: The officially registered domain name that immediately precedes .com or .net and refers to a set of pages with a common identity. This definition includes IP addresses that are part of the common identity.

AdRelevance Intelligence Reports
AdRelevance Intelligence Reports are released monthly and are designed to provide customers, news media and industry watchers with a timely perspective on the rapidly changing landscape of online advertising. AdRelevance Intelligence 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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