Twenty pct of online firms' banner ads promote their
own company
NEW YORK, June 26 (Reuters) - Despite strong growth in the number of companies
paying to advertise on the Internet, a significant number of firms fill their Web site ad space
with banner ads promoting their own products and services, according to a report released
on Monday.
AdRelevance, a division of Media Metrix Inc.,(NasdaqNM:MMXI - news) said that house advertising -- ads placed by Web
publishers on their own sites -- accounts for almost 20 percent of all available online ad inventory. The Internet advertising
measurement firm said it monitored house advertising on the 500 highest-trafficked ad-supported sites between January and
April.
The study found 179 online companies devoted more than 1 percent of their inventory to house advertising, accounting for
more than 17 billion online ad impressions out of a total of 92 billion impressions.
It said 63 sites carry over 20 percent house ads, while only 15 sites in genres such as kids and family, games, and movies and
television, run greater than 50 percent house ads.
However, the study found that ``vertical sites such as online employment companies lead the pack when it comes to running
house ads.'' Approximately 45 percent of all online ad inventory on employment sites was devoted to house advertisements,
while portals ran an average of 12 percent house ads.
``Although the online advertising industry has been growing at a phenomenal rate, the AdRelevance house advertising figures
suggest that almost $26 million of potential online ad space is going unsold every week,'' said Charlie Buchwalter, vice
president of media research for the AdRelevance division of Media Metrix.
``It's important to note, however, that this house advertising phenomenon is not equally spread across all sites,'' he added.
``Portals, community sites and search engines are able to sell a higher percentage of their inventory than a variety of smaller,
more vertical Web site genres.'' |
