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Internet Ad Spending Grows 53 Percent Annually

CMRi, the Internet division of media tracking company CMR, found that Internet advertising continued its strong growth last year.

The medium saw a year-over-year increase in total advertising revenues, from $1.9 billion in 1999 to $2.9 billion last year, a 52.6% increase.

The Internet's share of total ad spending also grew, as measured during the first nine months of last year. CMRi found that the Internet portion of total ad spending grew from 1.75% during the first nine months of 1999 to 3.04% during the comparable period last year.

General Motors ranked as the largest Internet advertiser, a measurement that included all of its automotive brands, with a total ad spend of $47.9 million. Microsoft ranked second with spending of $25.5 million, although it reduced its ad spending by a whopping 31% (see charts below).

The ranking of brand expenditures showed that Barnes & Noble spent $15.9 million and Amazon.com spent $15 million, which placed the companies first and second on the brand list, according to CMRi, which measures online ad spending with its proprietary application AdNetTrackUS.

Among categories, the media and advertising sector, which includes Internet communities, content providers, portals and search engines, topped the list spending $542.2 million - an increase of 83.4% over 1999. The electronic retail sector spent $510.9 million in Internet advertising last year - an increase of 73.6% from 1999 spending.

"Internet advertising has been experiencing a steady growth," said David Peeler, president and CEO of CMR. "While most industry sources feel Internet spending is coming to a plateau, our research suggests that spending is still strong and will gradually increase."


Rob Williams, Sharpermedia.com. February 12, 2001

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