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Dot-coms Still Tops in Net Ads, Study Finds

Despite an increased focus by traditional companies on Internet advertising, dot-com advertisers still outpace their bricks-and-mortar brethren online two to one, a report released today by AdRelevance, a division of Media Metrix, said.

The report, which analyzed the top 200 online advertisers in Q2 2000, found that 68 percent of Internet advertisers were dot-com companies, up 14 percent from last year. Further, 138 dot-coms were responsible for 75 percent of the ad impressions in June 2000 versus a year ago, when 108 dot-coms committed 64 percent of the ad impressions.

While dot-coms, in their cost-cutting measures, have shied away from traditional advertising, they continue to rely on the Web to relay their message, said Marc Ryan, an analyst for the Seattle, Wash.-based Internet measurement firm. "It makes sense. [Dot-coms] understand the model and they understand the benefits of it," he said. "It points to how dot-coms embrace the Web and use it as a primary source of advertising."

According to the study, Web media, retail and business-to-business industries are dominated by dot-com advertisers, with 85 percent, 74 percent and 61 percent respectively. On the other hand, traditional advertisers populate the travel industry (76 percent), software (84 percent), hardware and electronics (97 percent) and consumer goods (97 percent) industries.

As traditional companies become more comfortable with the Internet, Ryan predicts that more will adopt the Web as a viable advertising alternative. "It has proven to be successful in building brand awareness, building purchasing intent and it also has the direct marketing component."


Ann M. Mack, ADWEEK. September 6, 2000

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