Study: Net Advertising Focused on E-Commerce, Not Branding

Advertising on the Internet generally is narrowly focused on e-commerce, not
on building strong off-line brands according to a new industry study.

The study, by The Strategis Group, entitled
“Advertising on the Internet: 1999,” found that the top three Web advertising
categories — computer goods, books and credit cards — are all largely tied
to e-commerce.

Ads from 13 of the Fortune 25 companies were not found on the top 50 Web
sites, the study found, and many of America’s leading brands, including
Wal-Mart, Pepsi, Coke Classic, Burger King, Nabisco and Nike were absent from
the top 50 Web sites.

The survey also found that 52 percent of Internet users had not clicked on
any ad within the past week and 40 percent of those who had could not recall
any Internet ad.

Perhaps not surprisingly, the study also found that advanced advertising
techniques, such as interstitials and rich media rich ads are still not used
on most sites.

The Strategis Net Presence Survey, part of the larger Advertising on the
Internet: 1999 study, included 6,972 ads on 50 top Web sites. Each ad was
logged into a database based on its visibility to calculate the “Net
Presence” of over 700 top Internet advertisers in 39 separate categories. Net
Presence is a composite measure of Internet advertising visibility.

E-commerce leader Amazon.com garnered the highest Net Presence rating at
57.6, but most Internet advertisers have a Net Presence below 2, the study
found.

The Internet’s Most Visible Advertisers, Ranked by Net Presence:

Internet’s Most Visible Advertisers
Rank Advertiser Category Net Presence
1. Amazon Books 57.6
2. Barnes & Noble Books 56.1
3. Microsoft Computer/Portal 42.0
4. NextCard Visa Credit Cards 39.2
5. CDnow.com Music 35.1
6. First USA Credit Cards 26.5
7. 1-800-Flowers Flowers 25.6
8. eBay Auction sites 25.0
9. Enews Gen. Merchandise 16.8
10. Network Solutions Site Services 16.7
11. Lowestfare Travel 16.5
12. Onsale Computer 14.5
13. Visa Credit Cards 13.1
14. Sun Microsystems Computer 12.8
15. General Motors Autos 12.7
Source: The Strategis Group, Inc.

“Internet advertising is still in its infancy,” said Jeff Moore, Internet
consultant with The Strategis Group. “Advertising for consumer brands like
food products and personal care products was no more prominent than
advertising for online casinos. This will change dramatically as high-speed
access gains ground and the ability to target consumers becomes more refined.”

The Strategis Group publishes in-depth market research reports, provides
customized consulting services and supplies continuous information solutions
to the Internet, cable TV, satellite, telephony, broadband and wireless
communications industries.

Get the Free Newsletter!

Subscribe to our newsletter.

Subscribe to Daily Tech Insider for top news, trends & analysis

News Around the Web