Some significant increases in CPQ et.al. Sorry about the format
but it is easier to see the charts (thanks Aitch,how'd I do?).
Internet Ad Spending Continues Rapid Growth Through Third
Quarter
07:20 a.m. Feb 15, 1999 Eastern
NEW YORK, Feb. 15 /PRNewswire/ -- Internet advertising continued its trend of rapid
and steady growth through the first three quarters of 1998 with the top 25 industries
increasing spending 86.7% compared to the same period in 1997. The announcement was
made today by InterMedia Advertising Solutions (IAS). The information was contained in
its third quarter InterWatch report.
Computers and software (including on-line and Internet services) continue to lead all
industries in spending, accounting for nearly half of all Internet advertising (47.3% at
$321.6 million); however, it ranks only 20th in growth at 64%. Dramatic growth is seen in
industries such as medicines (up 403%), government and organizations (up 351.9%),
direct response companies (up 273.9%), retail (up 163%) and financial (up 127.8%).
Over 400 industries have been tracked by the InterWatch report making the study an
accurate and detailed picture of the dramatic growth in advertising activity on the Internet.
InterWatch also monitors Internet spending as part of overall advertising expenditures.
Among the approximate 300 web sites tracked, the top 50 sites accounted for over
$636.5 million in revenue through the first nine months of 1998, a growth of 90.5% over
1997.
"We know that computers and software continue to be major players," said Joe Philport,
president of IAS, "but what we are seeing is that many other industries have discovered
the importance of this medium. Advertisers in these industries are now using the Internet as
an essential vehicle for implementing their marketing strategies."
Industry spending
Following computers and software in ad spending, the financial industry represented 8.8%
of the dollars spent on the Internet at $59.9 million. Direct response companies jumped to
$47.3 million with 7%, followed by media and advertising in fourth at $35.2 million, with
5.2%. Local services and amusements were closely behind in fifth at $33.2 million with
4.9% of Internet ad expenditures through the first three quarters of 1998.
Internet's place in today's ad budgets
The Internet now represents 1.5% of overall ad budgets. For the full year of 1997 the
Internet claimed .74%. Computers and software is at 17.3%, business and technology at
7.8%, direct response companies at 2.8%, financial at 2.2% and unexpectedly camps &
seminars are at 2.1%.
Top spenders
Microsoft was the top spender on the Internet through the first nine months of 1998 at
$25.5 million, up 7.8 % over 1997. IBM is closing the gap at $21 million, a 77% increase.
Excite was third at $8.8 million, followed closely by General Motors up 111.8% to $8.2
million.
Significant gains in the top 25 were registered by #6 ranked Digital Equipment Corp. (up
266% at $6.2 million), #7 Compaq (up 279% at $5.9 million), #8 Datek Securities (up
341.1% to $5.9 million), #12 Barnes and Noble (up 469.4% at $5 million) and First USA
at #20 (up 390.7% to $3.9 million).
InterMedia Advertising Solutions was formed to monitor and provide complete industry
detail on advertising occurrences and expenditures on the Internet. The information is
delivered using the industry standards developed by IAS' sister company, Competitive
Media Reporting (CMR). CMR is the industry leader in providing strategic advertising
intelligence to advertising agencies, advertisers, broadcasters and publishers. CMR and
IAS are VNU Marketing Information Services Companies.
IAS will make this trend analysis available quarterly as a complement to its monthly
InterWatch expenditure report.
To receive more information, contact Michael Simoni at 212-355-0400 or at
msimoni@auletta.com.
Trends in Internet Advertising--3rd Quarter 1998
Top 25 Publishers
Rank Site Title Jan-Sept 1997 Jan-Sept 1998 Growth
1 YAHOO $41,247,057 $88,014,922 113.38%
2 EXCITE NETWORK
- EXCITE.COM
& WEBCRAWLER $33,329,543 $74,933,850 124.83%
3 INFOSEEK $23,494,621 $51,871,784 120.78%
4 LYCOS $17,701,000 $40,783,200 130.40%
5 MICROSOFT NETWORK $12,344,593 $32,809,364 165.78%
6 CNET $19,736,250 $31,464,244 59.42%
7 NETSCAPE $30,224,189 $29,472,341 -2.49%
8 ZD NET $18,645,749 $27,506,888 47.52%
9 ALTAVISTA $8,484,871 $23,561,170 177.68%
10 CMPNET $11,010,389 $15,107,106 37.21%
11 WIRED DIGITAL $5,827,975 $14,692,325 152.10%
12 CNN INTERACTIVE $8,260,000 $14,628,500 77.10%
13 IDG $7,885,936 $13,108,834 66.23%
14 SPORTSLINE $3,902,575 $12,747,500 226.64%
15 WALL STREET
JOURNAL
INTERACTIVE $6,889,500 $12,443,818 80.62%
16 PATHFINDER $6,843,164 $11,145,500 62.87%
17 GEOCITIES $4,418,720 $10,295,750 133.00%
18 ESPN SPORTSZONE $6,716,635 $9,732,331 44.90%
19 WEATHER CHANNEL $2,811,497 $9,005,000 220.29%
20 HOMEARTS NETWORK $2,723,450 $8,595,000 215.59%
21 BROADCAST.COM $4,230,621 $8,335,015 97.02%
22 USA TODAY $6,309,616 $7,907,314 25.32%
23 NEWSEDGE NEWSPAGE $6,042,000 $7,762,500 28.48%
24 REALNETWORKS $3,524,500 $5,171,000 46.72%
25 NEW YORK TIMES $3,117,500 $5,109,500 63.90%
Total Top 25 Publishers $295,721,950$566,204,757 91.50%
Trends in Internet Advertising--3rd Quarter 1998
Top 25 Advertisers
RankCompany Title Jan-Sept 1997 Jan-Sept 1998 Growth
1 MICROSOFT CORP $23,642,616 $25,480,810 7.77%
2 IBM CORP $11,859,395 $20,996,141 77.04%
3 EXCITE INC $9,142,257 $8,788,206 -3.87%
4 GENERAL MOTORS
CORP (GMC) $3,862,335 $8,179,587 111.78%
5 INFOSEEK
CORPORATION $5,305,665 $6,989,131 31.73%
6 DIGITAL EQUIPMENT
CORP $1,704,776 $6,238,500 265.94%
7 COMPAQ COMPUTER
CORP $1,568,641 $5,943,585 278.90%
8 DATEK SECURITIES $1,330,872 $5,869,772 341.05%
9 3COM CORP $1,275,735 $5,380,714 321.77%
10 AT&T CORP $3,958,684 $5,343,649 34.99%
11 LYCOS INC $5,007,543 $5,317,583 6.19%
12 BARNES & NOBLE INC $886,197 $5,046,338 469.44%
13 NETSCAPE COMMUNICATIONS
CORPORATION $6,044,767 $4,971,804 -17.75%
14 HEWLETT PACKARD CO $2,394,791 $4,925,231 105.66%
15 WALT DISNEY COMPANY $2,196,970 $4,328,546 97.02%
16 INTEL CORP $2,752,301 $4,163,654 51.28%
17 HONDA MOTOR CO INC $1,656,288 $4,061,516 145.22%
18 CBS SPORTSLINE
USA INC $4,794,444 $4,027,263 -16.00%
19 CD NOW $1,179,766 $3,987,923 238.03%
20 FIRST USA INC $798,119 $3,916,080 390.66%
21 AMAZON.COM BOOKS $2,396,857 $3,867,533 61.36%
22 TOYOTA MOTOR SALES
USA INC $2,862,892 $3,744,448 30.79%
23 VISA INTERNATIONAL $2,030,560 $3,741,949 84.28%
24 IVILLAGE $2,671,215 $3,646,005 36.49%
25 SONY CORPORATION $1,834,355 $3,537,537 92.85%
Total Top 25 Advertisers$103,158,041$162,493,505 57.51%
Trends in Internet Advertising--3rd Quarter 1998
Top 25 Industry Classes Jan-Sept 1998 % of Jan-Sept.
Rank Industry Classes 1998 Total
1 COMPUTERS & SOFTWARE $321,612,102 47.27%
2 FINANCIAL $59,865,153 8.80%
3 DIRECT RESPONSE
COMPANIES $47,292,331 6.95%
4 MEDIA & ADVERTISING $35,165,509 5.17%
5 LOCAL SERVICES &
AMUSEMENTS $33,227,398 4.88%
6 AUTOMOTIVE, AUTOMOTIVE
ACCESS & EQUIP $30,374,585 4.46%
7 PUBLIC TRANSPORTION,
HOTELS & RESORTS $19,209,946 2.82%
8 TELECOMMUNICATIONS $18,197,787 2.67%
9 RETAIL $18,190,555 2.67%
10 BUSINESS & TECHNOLOGY
NEC $11,442,330 1.68%
11 INSURANCE &
REAL ESTATE $8,257,974 1.21%
12 GOVERNMENT &
ORGANIZATIONS $7,409,632 1.09%
13 SCHOOLS, CAMPS,
SEMINARS $7,275,615 1.07%
14 MANUFACTRG: MTRLS
&EQUIP/FREIGHT/IND
DEV $5,764,329 0.85%
15 GAMES, TOYS &
HOBBYCRAFT $5,568,270 0.82%
16 MEDICINES & PROPRIETARY
REMEDIES $5,342,235 0.79%
17 AUDIO & VIDEO
EQUIPMENT & SUPPLIES $4,623,622 0.68%
18 READY-TO-WEAR $3,540,745 0.52%
19 AUTOMOTIVE DEALERS
& SERVICES $2,452,844 0.36%
20 PERSONAL HYGIENE
& HEALTH-UNISEX
& WMN $2,359,756 0.35%
21 MISC MERCHANDISE $2,152,297 0.32%
22 BUILDING MATERIALS,
EQUIPMENT & FIXTURES $1,808,424 0.27%
23 SPORTING GOODS $1,665,209 0.24%
24 BEVERAGES $1,579,781 0.23%
25 COSMETICS & BEAUTY
AIDS-UNISEX & WOMEN $1,481,833 0.22%
Total Top 25 Industry
Classes $655,860,264 96.40%
Trends in Internet Advertising--3rd Quarter 1998
Top 25 Industry Classes Ranked By Growth
Rank Industry ClassesJan-Sept 1997 Jan-Sept 1998 Growth
1 MEDICINES &
PROPRIETARY REMEDIES$1,062,126 $5,342,235 402.98%
2 GOVERNMENT
& ORGANIZATIONS $1,639,748 $7,409,632 351.88%
3 BUILDING MATERIALS,
EQUIPMENT & FIXTURES $437,546 $1,808,424 313.31%
4 DIRECT RESPONSE
COMPANIES $12,650,238 $47,292,331 273.85%
5 MISC MERCHANDISE $766,153 $2,152,297 180.92%
6 LOCAL SERVICES
& AMUSEMENTS $11,847,398 $33,227,398 180.46%
7 SCHOOLS, CAMPS,
SEMINARS $2,620,209 $7,275,615 177.67%
8 SPORTING GOODS $604,661 $1,665,209 175.40%
9 RETAIL $6,917,489 $18,190,555 162.96%
10 COSMETICS & BEAUTY
AIDS-UNISEX & WOMEN $563,888 $1,481,833 162.79%
11 PERSONAL HYGIENE &
HEALTH-UNISEX & WMN$1,025,527 $2,359,756 130.10%
12 BUSINESS &
TECHNOLOGY NEC $4,976,692 $11,442,330 129.92%
13 FINANCIAL $26,283,247 $59,865,153 127.77%
14 READY-TO-WEAR $1,600,904 $3,540,745 121.17%
15 PUBLIC TRANSPORTION,
HOTELS & RESORTS $8,912,694 $19,209,946 115.53%
16 INSURANCE &
REAL ESTATE $3,997,038 $8,257,974 106.60%
17 AUTOMOTIVE, AUTOMOTIVE
ACCESS & EQUIP $15,517,683 $30,374,585 95.74%
18 GAMES, TOYS
& HOBBYCRAFT $3,074,325 $5,568,270 81.12%
19 MANUFACTRG: MTRLS
&EQUIP/FREIGHT/IND DEV$3,339,438 $5,764,329 72.61%
20 COMPUTERS &
SOFTWARE $196,115,039 $321,612,102 63.99%
21 AUTOMOTIVE DEALERS
& SERVICES $1,528,505 $2,452,844 60.47%
22MEDIA & ADVERTISING $22,173,451 $35,165,509 58.59%
23 AUDIO & VIDEO
EQUIPMENT & SUPPLIES $3,716,948 $4,623,622 24.39%
24 BEVERAGES $1,568,106 $1,579,781 0.74%
25 TELECOMMUNICATIONS $18,374,550 $18,197,787 -1.0%
Total Top 25 Industry
Classes $351,313,604 $655,860,264 86.69%
SOURCE InterMedia Advertising Solutions
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