Retailers Lead Online Ad Impressions

Retailers of goods and services were the strongest online advertisers during
the month of May, continuing their historical strength as a top category,
according to Nielsen//NetRatings.

“Books and CDs are still the most dominant products promoted on the Web, as
evidenced by this month’s top advertiser, Bertelsmann, who led with large
campaigns for DoubleDirect and CDNow,” said Charles Buchwalter, vice
president of client analytics at NetRatings.

Twelve out of the 13 industries measured posted year-over-year increases in
online ad impressions, with seven categories boasting triple digit growth,
the results said.

The Internet measurement and research firm also said overall online
advertising impressions jumped 77 percent year-over-year to 94.2 billion
impressions in May, as compared to 53.2 billion ad impressions a year ago.
The usual suspects were driving the increase: online retailers looking to boost
traffic and sales.

But while online retailers such as Amazon.com and CDNow.com helped
drive the more than 33.8 billion ad impressions for the retail category in
May (a 77 percent rise), ad spending overall is still expected to show no
improvement this year.

That’s because while ad impressions are heading up, so have the number of
people going online, Buchwalter added. Add to that the phenomenon of falling
rates on ads in the difficult economic climate and it amounts to flat
spending, he said.

“But overall, the numbers show that the online ad market is firming up.”

The second biggest ad category was financial services, with 14.4
billion online ad impressions issued for the month, while Web Media related
ads were third with 12.1 billion impressions. Behind that was the travel
category with 5.4 billion impressions, followed by the entertainment
category which recorded 4.3 billion impressions.

Buchwalter said the travel category, although ranked fifth in overall
impressions, actually showed the most resilience in bouncing back after
travel planning tumbled in the aftermath of September 11th. Its 5.4 billion
impressions for May represented a 304 percent increase over last May.

Although Bertelsmann perched atop the retail goods
and services category, Netstock Corporation was the biggest advertiser in
the financial services category, NetRatings said.

USA Networks, Inc., majority owner of online personals site Match.com and
hot travel property Expedia.com, purchased the most online
advertising impressions in both the Web media and travel categories. And
Cassava Enterprises rounded out the sixth category of entertainment-related
online ads.

But what the market, and researchers such as the Milaptas, Calif.-based
Netratings are looking for, Buchwalter added, are signs that big traditional
advertisers might be looking favorably at online advertising.

“That’s the big issue: When are large, traditional, consumer products
advertisers going to jump into the deep end,” he said.

With Bertelsmann’s new position as the top retail advertiser online, and its
ownership of more traditional companies such as publisher Random House, the
company could help lead other traditional companies to the medium, according
to NetRatings.

“It’s not enough to have the industry think they’re home free,” Buchwalter
added of Bertelsmann, “but we think it’s a trend in the right direction.”