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Report Predicts Banner Use to Decline

A new industry study predicts banner ads, which accounted for 52 percent of all advertising dollars on the Internet in 1998, will decline in importance to only 26 percent of Web advertising sales by 2001.

According to the eAdvertising Report, published by Web research firm eMarketer, ad dollars from banner advertisements will migrate to strategic sponsorships, which claimed 40% of the online advertising dollars placed in 1998.

Sponsorships will grow steadily to represent 58 percent of all online advertising expenditures by 2001. Banners won't disappear, but they will take on a less important role, the report predicts.

The report, presented by Advertising Age, contains statistical information aggregated from hundreds of research sources, eMarketer says.

"Savvy Web advertisers will deeply integrate themselves within the content and services offered to targeted customers through exclusive site sponsorships," said Geoffrey Ramsey at eMarketer. "While conventional thinking and inertia on the part of online advertisers has held this trend back, increasingly companies are breaking out of the banner box."

Interestingly, the report indicates that by the year 2001, 10 percent of Web ad dollars will be placed in some format or technique that has not been conceived yet. This new model will begin to emerge within the next 18 months and it will siphon off ad dollars--primarily from banners and interstitials, the report says.

The eAdvertising Report, consisting of 102 pages and containing 145 charts, is being marketed for $795.