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To: Yargnad who wrote (34494)	10/11/1998 12:22:00 AM
From: Night Writer	Respond to of 97611

First Quarter Internet Ad Spending Takes Off; Major Industries Show 92% Increase CAUTION - ADVANCE FOR RELEASE AT 8 A.M. EDT MONDAY, OCT. 12/ ADVANCE/ NEW YORK, Oct. 9 /PRNewswire/ -- Internet advertising continued its sharp upward trend with the top 25 industries increasing spending 92% in the first quarter of 1998 compared to the same period in 1997. While computers and software (including on-line and Internet services) continue to account for nearly half of all Internet advertising (49.7% at $96.7 million), its growth was less than average (75.7%). The largest growth is seen in industries such as government and organizations (up 455%), medicines (up 409%), local services and amusements (up 223.9%), direct response companies (up 250.9%), retail (up 131.3%) and automotive (up 128.8%). The InterWatch first quarter trend report was released today by InterMedia Advertising Solutions (IAS). Over 400 industries have been tracked making the report an accurate and detailed picture of the dramatic growth in advertising activity on the Internet. The study also tracks Internet spending as part of overall advertising expenditures. Among the approximate 300 web sites tracked, the top 50 sites accounted for over $181 million in revenue in the first quarter of 1998, a growth of 101.4% over 1997. In making the announcement, Joe Philport, president of IAS said, "By examining industry trends to this level of detail we are able to get a sense of what industries are influencing the future of Internet advertising, and just how big a role they are playing. We will make this trend analysis available quarterly as a complement to our monthly InterWatch expenditure report." For the first time the Internet claimed over one percent (1.3%) of the overall ad budgets, and the percentage is clearly growing. Computers and software is now at 14.6%, business and technology at 7.3%, direct response companies at 2%, financial at 1.7% and surprisingly games, toys & hobbycrafts and schools, camps & seminars are both at 1.6%. Microsoft was the top spender on the Internet in the first quarter of 1998 at $7.7 million, up only .1% over 1997. IBM, with a strong 147.8% increase, is closing fast in the second spot at $7.67 million. And, Digital Equipment Corp. jumped an astounding 478.8% to place third at $2.5 million. Significant gains in the top 25 were registered by #10 ranked Compaq (up 1,089% at $1.6 million), #14 Datek Securities (up 1,507% to $1.4 million), #18 Honda (up 251.5% at $1.2 million) and CD Now at #21 (up 875.8% to $1.1 million). Following computers and software, the financial industry represented 8.5% of the ad dollars spent on the Internet at $16 million. Direct response companies jumped to $11 million with 5.7% and media and advertising were a close fourth at $10.6 million, with 5.5% of the total first quarter 1998 expenditures. 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. To receive more information on the IAS InterWatch report, contact Michael Simoni at 212-355-0400 or at msimoni@auletta.com.