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Online Ad Spending To Double in Three Years
Web Traffic Drops During Holiday Season

While online ad spending is not expected to grow as fast as earlier predictions had projected for this year, it will double within the next three years to a total of $63 billion, according to Forrester Research.

The Cambridge, Mass.-based market research firm estimates that a wider group of advertisers will begin testing online advertising and shift spending to Web and e-mail marketing.

Forrester surveyed about 60 marketers that said online marketing per advertiser is expected to rise from an average of $550,000 in 2000 to $1 million per company in 2003. Last year, Web spending accounted for 8 percent of total ad dollars in all media, but that figure would grow to 15 percent by 2003, Forrester said in its report.

Meanwhile, Web users have been steadily spending less time surfing the Internet at-home and at-work in the past few months, according to numbers published yesterday by Nielsen/NetRatings, an Internet audience measurement service.

The average time spent per person online declined more than 15 percent in December from October 2000, dropping from 17.5 to 14.9 hours. Web usage dropped as page views declined more than 17 percent, from 1,196 page views in October to 983 in December.

The number of unique sites visited per month fell 15 percent from 20 to 17 sites, while the number of surfing sessions per month decreased 15 percent from 33 sessions to 28 sessions in December, a drop attributed to holiday distractions among Internet users.


Rob Williams, SharperMedia.com. January 19, 2001

Copyright © 2001 Plesser Associates, Inc.. All rights reserved.