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Pulse detected in online advertising

Pulse detected in online advertising

There's early evidence of an online advertising recovery as the number of individual online ads rose during the beginning of 2002, according to the Internet audience measurement and research company Nielsen/NetRatings.

It says it's found that the number of unique ads jumped 33 percent from January to April of this year, reaching a new high of nearly 70,000 ads online last month.

"The burst of online ads over the last three months indicates that the online ad market is finding some new traction," says Charles Buchwalter, vice president of media research for NetRatings. "From the previous peak in March of 2001, the number of unique ads on the Web declined through the rest of 2001 to reach a low in January of this year. The downward trend during the past year has been reversed in just three short months."

Large traditional advertisers fueled the growth online ads in early 2002, the study says. Blue chip, established advertisers made up the top 10 growth leaders in the number of online ads created. Columbia House took the No. 1 spot, with 330 unique ads in April 2002, jumping 89 percent since the beginning of the year. Nestle USA, claimed the second spot with 214 ads last month, rising 67 percent, while the federal government increased its ad creation by 60 percent to 370 ads. Rounding out the top five, USA Networks posted 538 unique ads in April, growing 60 percent, while Microsoft rose 55 percent to 348 ads.

"Two years after the dot-com bubble burst in mid-2000, blue-chip companies' adoption of the online medium appears to be accelerating," says Buchwalter. "Over the next 12 months, the significance of this development will be underscored if these increases in unique ads translate into sustained increases in online ad expenditures."


Unknown, San Francisco Business News May 14, 2002

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