By Bambi Francisco, CBS MarketWatch
Last Update: 11:46 PM ET Aug 16, 1999 NewsWatch
SAN FRANCISCO (CBS.MW) -- Internet stocks could be poised for another positive day Tuesday as the latest reading on the health of online advertising activity shows signs of improvement.
Internet advertising rose 7.4 percent in July, according to Nielsen/Net Ratings, Inc.'s Internet Advertising Index. This nearly doubles the rate of growth achieved in June.
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Microsoft (MSFT: news, msgs) was ranked the number one site, amassing 8.4 percent of advertising impressions. Following Microsoft were Amazon.com (AMZN: news, msgs) at number two and America Online (AOL: news, msgs) taking the number four position.
The number three spot went to TRUSTe, an independent, non-profit initiative, www.truste.org, dedicated to privacy issues and consumer concerns on the Internet.
The latest data not only shows an increase in online advertising but that activity continues to be heavily concentrated at the high end of the food chain as the top ten advertisers accounted for 30 percent of the pie, up from 28 percent in June. A Forrester Research survey, earlier this year, indicated that Web aggregators collectively accounted for 15 percent of all traffic, but about 70 percent of advertising revenues.
Included in the top ten rankings for the first time was NextCard, which moved up 17 notches to number five. Yahoo! (YHOO: news, msgs) bumped up its place to number nine.
Dropping out of the ad rankings were 911Gifts and FirstUSA. The change underscores the seasonal nature of ad campaigns during holidays, which include Father's Day in June, according to Nielsen/NetRatings.
Why is Net advertising so powerful? A powerful feature of Net advertising is its proximity to commerce as Web browsers are potential shoppers just at a click of mouse. The advent of broadband is also expected to help accelerate the migration of ad dollars away from traditional means.
The Internet is also the only distribution medium which collapses the sales cycle from the brand building to closing the sale. |
