Offline Spending by Internet Brands Passes $1 Billion

Advertising by dot com companies in traditional media saw explosive
growth over the first three quarters of 1999, with spending at $1.4
billion, up 291.3 percent from the same period last year, according to
Competitive Media Reporting (CMR).

If those numbers sound impressive, realize they do not include the
holiday-season spending. Once included, CMR predicts that dot com
companies have already more than doubled the $649.2 million spent
offline for all of 1998.

CMR tracks advertising dollars spent on television, newspapers,
magazines, radio, and outdoor. Its tracking technologies collect
occurrence and expenditure data as well as the creative executions of
over 900,000 brands in 15 media.

“This is surely one of the fastest growing industries, if not the
fastest, we have ever seen,” said Jerry Arbittier, senior vice
president corporate research and analysis CMR. “The holiday season has
created a tremendous pressure for companies to draw people to their
sites. We do not make predictions, but anyone who is watching TV,
reading newspapers or magazines knows that fourth quarter spending is
going to be tremendous.”

Increases in spending have been across every medium. Network TV, up
362.4 percent, claimed the most advertising dollars at $278.3 million.
Magazines followed with $265.1 million, up 190 percent, and Cable TV
was next, up 366.1 percent to $202.6 million.

Online broker E*Trade was by far the leading advertised Internet
brand, spending $89 million in the first nine months, up 424.5 percent
from $17 million during the same period in 1998. Value America was
second, up 148.3 percent to $46.5 million, followed by Charles Schwab
at $40.8 million, up 9,142.7 percent. Snap.com was fourth, up 1,096.8
percent to $38.1 million and Ameritrade, who did not have any ad
spending in 1998, was fifth at $36.4 million.

Other significant top 10 spenders included Monster.com up 8,659.5
percent to $20.6 million and Go.com at $20.3 million and Discover
Brokerage at $17.1 million.

Top Internet Brands Spending Offline
Rank Brand Jan.-Sept. 1999 Jan.-Sept. 1998 Percent Change
1. E*Trade $88,985,000 $16,967,100 424.5%
2. Value America Stores $46,538,200 $18,743,600 148.3%
3. Charles Schwab $40,861,900 $442,100 9,142.7%
4. Snap.com $38,054,800 $3,179,700 1,096.8%
5. Ameritrade $36,388,900
6. AT&T Business Network $32,845,500 21,382,900 18.6%
7. America Online $30,051,100 25,338,000 18.6%
8. Monster.com $20,613,700 235,300 8,659.5%
9. Go.com $20,306,200
10. Priceline.com $20,116,600 8,034,000 150.4%
11. Amazon.com $17,730,400 14,028,500 26.4%
12. Discover Brokerage $17,091,400
13. AT&T Worldnet $16,073,900 20,587,300 -21.9%
14. Microsoft Online $16,067,200 993,300 1,517.6%
15. Yahoo $16,028,900 4,274,200 275.0%
Source: Competitive Media
Reporting
Dot Com Spending by Media
Rank Measured Media Jan.-Sept. 1999 Jan.-Sept. 1998 Percent Change
1. Network Television $278,275,800 $60,184,500 362.4%
2. Magazines $265,085,100 $91,401,600 190.0%
3. Cable TV $202,627,000 $43,471,900 366.1%
4. Spot Television $166,928,300 $44,120,000 278.4%
5. National Spot Radio $154,621,400 $27,400,800 464.3%
6. National Newspapers $148,659,900 $41,404,000 259.0%
7. Newspapers $69,392,900 $17,522,500 296.0%
8. Network Radio $43,137,500 $17,172,200 151.2%
9. Outdoor $24,640,300 $3,972,400 520.3%
10. Sunday Magazine $6,978,300 $581,000 1,101.1%
11. Syndication $5,715,200 $1,910,700 199.1%
Source: Competitive Media
Reporting

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