Here's something interesting:
Iconocast - Ad Network Frenzy By Michael Tchong
The overwhelming majority of ad sites are represented by some type of ad network or rep firm. The biggest network, with more than 200,000 member sites is LinkExchange. The revenue leader, however, is DoubleClick, which billed $20 million in the first nine months of 1997. DoubleClick plans to raise $27 million in an IPO that values the company at $228 million.
On the heels of DoubleClick's IPO came the announcement that Petry Interactive, Katz Millennium and Interactive Imaginations will merge into one company called 24/7, that will serve an estimated 500 million ad impressions each month. 24/7 has attracted an investment of $10 million from such institutional investors as Big Flower Holdings, Prospect Street NYC Discovery Fund and Travelers Insurance Company, a subsidiary of the Travelers Group.
Last week, SOFTBANK Interactive Marketing was sold to an outfit called Zulu-Tek, which reportedly is a penny-stock company [one SOFTBANK client has already decided to bolt from the new organization.]
The top 10 networks, based on sites represented are:
Rank Network Sites 1 LinkExchange 200,000 2 24/7 3,400 3 RealMedia 300 4 DoubleClick 70 5 SOFTBANK Interactive Marketing 27 6 Venture Communications 25 7 ADSmart 21 8 CLIQNOW 18 9 Winstar 18 10 WebRep 15 Source: 1997 AdKnowledge/1998 ICONOCAST
RICH MEDIA STUDY According to a Grey Interactive/ASI Interactive Research study sponsored by Intel, SOFTBANK Interactive Marketing and the Advertising Research Foundation, interstitial ads that "pop-up" on screen have a recall rate of 76 percent. This compares with "only" 51 percent for banner ads. [It's not clear to us what these figures mean exactly. We will find out and report additional details in the future.]
These interstitial ads also generate a 44 percent higher click-through than banner ads. Interestingly, among the study's 2,400 respondents, 56 percent of consumers felt positive about online advertising, compared to only 26 percent of business users.
Related Links Grey Interactive/ASI Interactive Research
Michael Tchong is editor of The Iconocast, an e-mailed newsletter. He may be reached at michael@iconocast.com
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