StatsAd Industry MetricsInternet Ad Spending Off 10 Percent from 2000

Internet Ad Spending Off 10 Percent from 2000

Online advertising spending dropped 10 percent for the first half of 2001 compared to first-half revenue in 2000, according to CMRi, the Internet division of CMR.

Online advertising spending dropped 10 percent for the first half of 2001 compared to first-half revenue in 2000, according to CMRi, the Internet division of CMR.

Internet ad spending for the first half of 2001 totaled $1.5 billion, led by Yahoo, which was responsible for $197.3 million in the first half of 2001, a 1.69 percent increase from the $194 million in the first half of 2000.

Among all parent companies, General Motors led Internet spending with $25.4 million in the first six months of 2001. Not far behind was eBay, which spent $24.4 million. Also topping the list of advertisers are Internet parent companies Amazon.com and Classmates Online Inc., spending $16.2 million and $15.1 million, respectively.

“Although we saw a gradual increase for online spending in the last quarter of 2000, the economic environment did not exclude this medium from the drastic hit we’ve seen across the entire marketplace throughout the course of 2001,” said David Peeler, president and CEO of CMR. “As budget planning for 2002 gets under way, companies still recovering from their losses will be reluctant to channel their dollars towards major ad campaigns. With this mindset, we do not expect a jump-start in spending to kick in by first quarter 2002, as many have hoped.”

When CMR released its mid-year forecast in July, it predicted that overall full-year 2001 ad spending would decline by 2 percent from $104.5 billion in 2000 to $102.4 billion. In 1999, total ad spending across all media was $92.1 billion. That number grew 13.5 percent to $104.5 billion in 2000. Despite the ad spending cutbacks the overall advertising industry has experienced this year, CMR still sees a two-year growth trend from 1999 to 2001 of 11.2 percent.

Top Ad Revenue Sites and Advertisers
First-Half 2001
Top Online Revenue
by Site
Top Online Spenders
by Company
Top Online Spending
by Industry
1. Yahoo $197,282,923 1. General Motors $25,415,811 1. Retail $299,404,537
2. AOL.com $174,263,850 2. eBay $24,356,260 2. Media & Advertising $261,440,537
3. Excite $90,453,160 3. Amazon.com Inc. $16,200,820 3. Financial $177,879,435
4. Lycos $61,892,893 4. Classmates Online $15,108,190 4. Computers & Software $149,753,786
5. AltaVista $50,577,473 5. J.P. Morgan Chase $14,914,052 5. Local Services & Amusements $143,964,572
6. Netscape $48,007,442 6. Barnes & Noble $14,368,801 6. Public Transportation, Hotels & Resorts $68,016,488
7. Webcrawler $38,903,498 7. Verisign Inc. $13,711,014 7. Automotive, Auto Accessories & Equip. $66,261,445
8. ESPN.com $23,677,857 8. AOL Time Warner $13,333,416 8. Telecommunications $42,318,614
9. Go.com $23,625,735 9. Providian Corp. $12,769,892 9. Government & Organizations $39,589,868
10. Weather.com $20,084,731 10. Bank One Corp. $11,187,960 10. Insurance & Real Estate $38,961,553
Source: CMRi

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