Dot-Coms Still Dominant Online Advertisers
Despite the dot-com financial pinch this year, they stilloutnumber traditional companies in online advertising.
Despite the dot-com financial pinch this year, they stilloutnumber traditional companies in online advertising.
Traditional companies may be paying more attention to online advertising, but they have long way to go to equal dot-com advertisers when it comes to actually placing an ad online. Dot-coms outnumber traditional advertisers online two to one, according to a report by AdRelevance, a division of online audience measurement company Media Metrix.
Key findings from the AdRelevance Special Report, which analyzes the Top 200 online advertisers from the second quarter of 2000 and compares dot-com companies to traditional businesses, include:
“With the market’s recent performance and the increased pressure for dot-coms to turn profits, it’s interesting to see that the clear majority of the AdRelevance Top 200 Online Advertisers are dot-com companies. According to the latest AdRelevance data, dot-com advertisers account for 68 percent of companies and 77 percent of ad impressions among the Top 200 Online Advertisers,” said Charlie Buchwalter, VP of media research for AdRelevance.
“When compared to traditional advertisers, the average dot-com appears to be spending more aggressively, typically even outspending traditional advertisers.”
While dot-com advertisers might not account for the majority of companies advertising online in some industries, the companies in the Top 200 dominate ad spending in some instances. For example, although only 32 of the Top 200 software advertisers are dot-coms, they account for 86 percent of all impressions within the software industry Web sites. Similarly, 48 of the Top 200 travel companies are dot-coms and account for 80 percent of all travel advertising impressions placed by the Top 200 travel advertisers.
“Despite the overall dominance of dot-com advertisers, traditional advertisers have managed to stake a claim in some industries,” Buchwalter said. “There’s no doubt in my mind that as traditional businesses become more comfortable with online advertising, they will begin to spend more of their budgets on the Internet — in fact that’s probably the next wave we’ll see hit the online ad industry. But, until that day comes, dot-coms are in the driver’s seat.”