To: aleta who wrote (12069 ) 8/12/1998 6:37:00 PM From: Luminous Respond to of 18444
Analyst warns Web ads are off target By Frank Barnako, CBS MarketWatch Last Update: 6:20 PM ET Aug 12, 1998 Listen to Internet Daily If advertising on the Internet is going to succeed, it must be right on target. So far, that's not typically the case. Researchers at a Jupiter Communications-sponsored advertising conference in New York said Wednesday that the growth of the Web advertising pie will be increasingly dependent on the successful introduction of techniques for reaching specific demographic groups. Despite claims the Net can reach specific groups, "that promise is not being met, and failure to do so could severely hinder future growth rates of the medium," said Jupiter's Evan Neufeld. Jupiter said its research found that the relatively high price of online ads compared with the price of ads in traditional media is theoretically justified by targetability and interactivity. Without true targeting, however, the potential goes largely unrealized, and click-through rates on banners decline to where they now hover -- at around 1 percent. Tellingly, Netscape (NSCP) and Citibank (CCI) characterized their advertising agreement for Netcenter yesterday as a "pay for performance" deal, while agreements between Unilever (UN), America Online (AOL) and Microsoft (MSFT) also included comments indicating payments for the media placement would be tied to results produced. "Sites are often unable to provide advertisers basic demographic data -- age, sex and income -- which is standard supporting evidence for charging higher [rates] in traditional media," said Neufeld. New deals between ad technology vendors and major Web sites should accelerate the development of targeting, he said, "but the time to move was yesterday."cbs.marketwatch.com