Strongest Online Ad Spending Seen In E-Commerce, Financial Sectors
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Competitive pressures drove e-commerce and financial players to sharply increase online ad spending in 1999, but online and computer-related companies continued to lead the pack, according to a new report by Competitive Media Reporting's CMRinteractive.
The report also showed that online ad spending climbed to 2.1 percent of the total advertising expenditures, jumping 85.9 percent to $1.910 billion from $1.027 billion the year before. The types of companies advertising also became more diverse in 1999, according to the report.
E-commerce companies boosted their spending by 153 percent over 1998 numbers, and the financial sector increased its Internet advertising outlay by 107.1 percent.
Online and computer companies spent $663.1 million -- 34.72 percent of total online ad expenditures in 1999. Next came e-commerce firms, with 14.6 percent, or $278.4 million. Following them were financial players, spending $191.7 million or 10.4 percent of the total.
The top spenders included advertisers from several different parts of the economy. The top five were Microsoft ($36.2 million), IBM ($27.1 million), General Motors ($21.4 million), HP ($16.2 million) and First USA ($14.6). Toyota and Honda were also in the top ten. Others in the finance category include MBNA America Bank, Fidelity Investments, Datek Online Brokerage, Visa and NextCard. Procter & Gamble was the sole top-ten player from the consumer packaged goods category.
Other evidence for diversification includes the fact that computer-related companies' expenditures accounted for a lower percentage of overall spending. In 1999, spending for the category made up 34.72 percent of the total. In 1998, that percentage was 44.7, and in 1997, computer-related companies accounted for 50.5 percent of all Internet advertising.