Survey: Web Budgets Will Triple To $3.5 Billion In 1999

Research firm ActivMedia Inc. said its survey of Web site managers indicates that spending will rise to $1.2 billion on new site technology and service in 1998 and triple that by 1999, and that’s only the beginning.

Over time, with continuing penetration of both business and consumer populations globally, Web site investment will reach $24 billion by 2002, according to the company’s “Real Numbers behind ‘Net Profits” study.

ActivMedia’s Vice President of Market Research Harold Wolhandler said: “We see
consumer-oriented online businesses, currently accounting for 37% of the Web
site development dollars during 1998, are continuing to invest heavily because
they know that the Internet’s ability to reach their target audience will grow
as technological innovations are brought to-market.

“Just think of the possibilities when digital TV brings the power of the Internet to the masses. Engaging the prospective buyer into the selling process through interactive clickable TV ads that whisk them out to a business’s Web site to
close the sale will be possible. This is when the online migration of all
forms of business, sophisticated and mundane, will occur.”

In a follow up study of Web sites that market to consumers (b-to-c),
executives were asked to review present and future interest in 124 different
specific products, product categories, services and features that promise to
support, maintain or advance Web site development. The results are available
in ActivMedia’s syndicated study, “Selling to
Consumer Web site Managers: A Marketer’s Guide to Site Development Needs”
for $1,295.

The “Real Numbers Behind ‘Net Profits 1998” is the fifth wave of ActivMedia’s
global tracking study conducted among more than 2,000 Web site Executives
responsible for e-commerce. To review the Executive Summary, visit here. The entire study is
available for $2,995.

News Around the Web