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Large Companies Increase Online Advertising By 18 Percent But Still Trail Smaller Companies, According To AdRelevance

Gradual growth from large companies does not signal a nearby end to market weariness

NEW YORK, January 29, 2001 - Large companies increased their weekly online ad impressions from 30 million to 37 million during the fourth quarter of 2000 but the online advertising market is still dominated by small and mid-size companies who tend to be dot.coms, according to AdRelevance, a Jupiter Media Metrix (NASDAQ:JMXI) company and innovator in Internet advertising measurement technology. The latest AdRelevance findings reveal that although large companies - companies with quarterly sales of 500 million dollars or more - buy more sites than their smaller counterparts, they are still buying fewer ad impressions on average. According to the data, large companies purchased an average of just 135 million impressions in the fourth quarter of 2000, compared to the 167 million impressions bought by small companies - companies with quarterly sales of 75 million dollars or less. (Note: Averages are determined by median numbers, see 'definitions' below.)

Key findings from the January AdRelevance Intelligence Report - which compares online media buying activities of small, medium and large companies based on the measurement of impressions, spending, unique ads and messages during the fourth quarter of 2000 - include:

  • Amazon.com bought the highest total impressions of any large company - 6.2 billion (Table A below)
  • Large companies bought an average of 72 sites while mid-size companies -companies with quarterly sales of between 75 million and 500 million - bought just 50.
  • Dot.com companies of all sizes bought more impressions than traditional companies of equal size. Mid-size dot.com companies led the way with an average of 453 million impressions purchased during the fourth quarter of 2000 (Table C below).

"Market weary sites have been hoping for the larger, big budget advertisers to jump into the deep-end of the online advertising pool, but the latest AdRelevance data indicate only a gradual increase in online advertising from large companies," said Charlie Buchwalter, vice president of media research for AdRelevance, a Jupiter Media Metrix company. "Dot.coms have been guiding the online ad industry since its inception and the mid-size dot.coms, whose customers are online are continuing to lead."

Table A: Top 5 Large Companies Ranked by Total Ad Impressions,
Fourth Quarter 2000

Source: AdRelevance, a Jupiter Media Metrix company
Company
Amazon.com
Microsoft
MSN
AOL
Netscape
Total Ad Impressions
6.1 billion
4.1 billion
3.2 billion
2.6 billion
1.6 billion
Note: These numbers represent impressions for all banner and button types excluding house advertising.

Table B: Median Ad Impressions Purchased by Company Size,
Fourth Quarter 2000

Source: AdRelevance, a Jupiter Media Metrix company
Company Size
Large
Medium
Small
Median Ad Impressions (in millions)
135
160
167
Note: These numbers represent impressions for all banner and button types excluding house advertising.

Table C: Median Ad Impressions Purchased by Company Size and Segment, Fourth Quarter 2000
Source: AdRelevance, a Jupiter Media Metrix company
Dot.coms by Size
Large
Medium
Small
Median Ad Impressions (in millions)
140
453
176
Traditionals by Size
Large
Medium
Small
Median Ad Impressions (in millions)
135
117
127
Note: These numbers represent impressions for all banner and button types excluding house advertising.

These and other figures are available in the January AdRelevance Intelligence Report, entitled "Advertising Within the Budget: The Relationship Between Advertising and Company Size." The reports are released for sale monthly and are designed to provide customers, news media and industry watchers with a timely perspective on the rapidly changing landscape of online advertising. For more information on AdRelevance and the AdRelevance Intelligence Report, please visit www.adrelevance.com or call 1-888-649-6540.

Definitions
Median: A number in a series of numbers above and below which there is an equal count of numbers or which is the arithmetic mean of two middle values where there is no one middle number.

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

Spending: A calculation of the estimated cost of placing ads (impressions standard rate card CPM).

Large Company: Large companies are classified as companies that had quarterly sales of $500 million or more.

Mid-size Company: Mid-size companies are classified as companies that had quarterly sales of between $75 million and $500 million.

Small Company: Small companies are classified as companies that had quarterly sales of $75 million or less.

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.

Editors Note: Unless otherwise noted, please source all data as the following: AdRelevance, a Jupiter Media Metrix company

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