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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Stephen who wrote (5886)	2/9/1999 11:54:00 PM
From: puborectalis	Read Replies (1) \| Respond to of 99985

Why I own both TNO and now MMPT...............................................Internet Ad Revenues Top $1 Billion For First Time By Yukari Iwatani, Reuters, 02/09/99 19:01 SAN FRANCISCO (Reuters) - Internet advertising revenues for the first nine months of 1998 totaled a record $1.3 billion and were on track to reach $2 billion for the year, the Internet Advertising Bureau said Tuesday. According to the quarterly IAB Advertising Revenue Report, it was the first time spending exceeded $1 billion in one calendar year and proves the Internet is a legitimate advertising medium. ''This report is the biggest endorsement yet from the marketing and advertising communities that online advertising is here to stay as an integral component of their marketing and branding plans,'' said Rich LeFurgy, chairman of the IAB, a trade group that recommends standards and practices for online advertising. Started in 1996, the IAB report represents data from more than 200 companies representing over 1,200 web sites. It is considered a leading indicator of trends in online advertising. The report found that advertising revenue through the nine months ending in September increased 121 percent over the year- earlier period. Although the third quarter tends to be a seasonally slow quarter, Internet advertising revenues reached $471 million in the period, a 116 percent increase over the same quarter in 1997, contributing to the strong overall growth. Jim Nail, an analyst with Internet research firm Forrester Research, said IAB's results were consistent with his own findings. Estimating that fourth quarter advertising revenue would be around $700 million, he said that would definitely put revenues in the $2 billion range. Nail added that this kind of doubling in ad spending year after year shows they are in a strong position and it seems like it will stay that way for a few more quarters. In a breakdown of the revenue, the report said the top 10 Internet publishers accounted for 70 percent of the total, reflecting the ongoing consolidation of web companies within the industry. Consumer-related advertising dominated the ad categories, followed by computing and financial services. Pointing to an increase in more creative forms of advertising such as television commercial-like interstitials, interactive rich media ads and e-mail sponsorships, LeFurgy said the industry was showing strong signs of evolving. ''I don't expect that banners are ever going to go away, but what this signals is that there is continued innovation,'' he said. LeFurgy also forecast the industry would start to see a significant increase in cross-media buys in 1999, with advertisers making media purchasing deals across both traditional and online media. ''We're starting to see this kick in in earnest and it's a tremendously important evolution for the industry because it leverages cross media synergies and from a revenue standpoint, it speaks to longer deals and deals of higher valuation,'' he said. ''We're going to see its use pretty much be the norm in six to nine months.'' Nail agreed with LeFurgy saying that the opportunity to combine the branding power of television and print ads with the ability of Internet ads to address consumer questions would be extremely attractive to advertisers. You can take the consumer further down the decision path toward buying the product, he added. - - - - - - - - - - - - - - - - - - - - - -