Holidays Lead to Ad Spending Explosion
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Dot com companies began the fourth quarter with an ad spending explosion, spending $473 million in the month of October alone, up more than 500 percent from the same period a year ago, according to data compiled by Competitive Media Reporting (CMR).
The one-month total for October was greater than each of the first quarters of 1999. Network television was the beneficiary of October's spending surge with $127.9 million in ad spending, topping its entire third quarter total of $78.6 million. CMR's information reflects advertising dollars spent in television, newspapers, magazines, radio, and outdoor.
"It is surely the fastest growing industry we have seen," Jerry Arbittier, senior vice president corporate research and analysis at CMR. "We anticipate that the holidays had an even bigger impact on the rest of the quarter."
Thanks to a strong holiday ad spending push, some companies spent more in October than they did in the entire third quarter. eToys spent $9.98 million in October, compared to $6.9 in the first nine months of 1999, according to CMR. KBkids.com spent only $187,000 during the first nine months of 1999, but began the fourth quarter with $8.7 million. Intel rose from $600,000 through three quarters to $7.8 million in October.
|Dot Com Spending by Company|
|Spending in US Dollars|
|Rank||Company||Oct. 99||Jan-Sept. 99||10-Month