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This report covers: Demographics: Business, Computing, Ecommerce, Internet Finance, Internet Marketing, Internet Services, Internet Usage, IT, Telecommunications, E-Commerce: B2B, B2C, Enterprise, Internet/ Web Usage, Medium Business, Geographic: Asia, Australia, Global, North America, Europe, Mexico, Latin America, U.S., Middle East, Telecommications: General, wireless, global, cable, networks,Internet Marketing: Business, email, Internet Advertising, Internet/Web Usage, Market Forecasts, Newsletter,

Will e-advertising survive? If so, what form will it take? How will it impact traditional media? The Online Advertising Report provides answers to these questions, the latest e-advertising figures and insightful analysis of the trends behind the numbers. The report is designed to help business professionals make strategic marketing decisions and build more effective integrated advertising campaigns.
The Report covers these issues and more:
There's no doubt that online advertising growth has slowed, but so has offline advertising. Despite the doom and gloom, eMarketer continues to predict a bright future for online advertising.

A key factor behind this anticipated growth is the fact that the market is still in its infancy. Online advertisers are experimenting with better ways to target viewers, new creative approaches and more precise means of measurement. eMarketer projects that the internet's percentage share of advertising dollars in the US will grow from 2.91 percent in 2000 to 8.24 percent by 2005.
It's also important to remember that e-advertising does not exist in a vacuum. Smart advertisers worldwide are maximizing the unique potential of each advertising medium -- offline and online. They're also seeking more efficient means of combining online media with their traditional advertising. eMarketer's Online Advertising Report is an indispensable reference tool for business professionals to use in planning and executing effective, integrated programs.
| Methodology | 7 |
| I Overview | 10 |
| II US Market Size and Growth | 15 |
| A. Comparative Estimates and Recast Projections | 18 |
| B. Seasonality | 35 |
| III Slicing the Pie: Traditional Media vs. the Internet | 39 |
| A. Spending Growth | 40 |
| B. Time Spent on Various Media | 47 |
| C. Television | 48 |
| D. Radio | 53 |
| E. Newspapers | 54 |
| F. Magazines | 56 |
| G. Classifieds | 57 |
| H. Direct Marketing | 61 |
| I. New Media | 62 |
| IV Website Publishers | 71 |
| A. Universe of Websites | 72 |
| B. Top eAdvertising Publishers | 74 |
| C. Unsold Ads (Where Web Ad Dollars Dont Go) | 77 |
| V Who Are the Web Advertisers? | 79 |
| A. Spending by Industry Category | 80 |
| B. Company Spending | 83 |
| VI Industry Trends | 87 |
| A. CPMs | 88 |
| B. Click-Through Rates | 99 |
| C. Cost Per Click Models (CPC) | 106 |
| D. Banners and Branding | 107 |
| E. Spending by Ad Formats | 116 |
| F. Rich Media Advertising | 120 |
| G. Wireless Advertising | 124 |
| H. Instant Messaging | 131 |
| VII Global Market Size and Growth | 135 |
| A. Offline Advertising | 136 |
| B. eAdvertising | 137 |
| VIII Glossary of Terms | 155 |
| Appendix: Glossary | 156 |
| Index of Charts | 159 |
| Seven Barriers to US eAdvertising, 2001 | 14 |
| US eAdvertising Expenditures, 1996-2005 (in billions) | 15 |
| Recast US eAdvertising Expenditures, 1996-2005 (in billions) | 18 |
| Recast US eAdvertising Expenditures, 1999-2005 (in billions) | 19 |
| Recast US eAdvertising Expenditures, 1997-2004 (in billions) | 20 |
| Recast US eAdvertising Expenditures, 1997-2003 (in billions) | 21 |
| Recast US eAdvertising Expenditures, 1997-2004 (in billions) | 22 |
| Recast US eAdvertising Expenditures, 1997-2001 (in billions) | 23 |
| Recast US eAdvertising Expenditures, 1998-2001 (in billions) | 23 |
| Recast US eAdvertising Expenditures, 2000 & 2001 (in billions) | 24 |
| Recast US eAdvertising Expenditures, 2000 & 2001 (in billions) | 24 |
| Comparative Estimates: US eAdvertising Expenditures, 2000 (in billions) | 25 |
| Comparative Estimates: US eAdvertising Expenditures, 2001 (in billions) | 27 |
| Comparative Estimates: US eAdvertising Expenditures, 2002 (in billions) | 29 |
| Comparative Estimates: US eAdvertising Expenditures, 2003 (in billions) | 30 |
| Comparative Estimates: US eAdvertising Expenditures, 2004 (in billions) | 31 |
| Comparative Estimates: US eAdvertising Expenditures, 2005 (in billions) | 31 |
| Comparative Estimates: Projected US eAdvertising Expenditures Growth,2001 | 32 |
| Comparative Estimates: US eAdvertising Expenditures Growth Projectedfor 2002 | 33 |
| US eAdvertising Expenditures per Internet User, 1998-2004 | 33 |
| Annual and Quarterly US eAdvertising Revenue Growth Comparison,1996-2000 | 34 |
| US eAdvertising Expenditures in Q4, 1996-2000 (in millions andas a percent growth rate) | 35 |
| US eAdvertising Expenditures, Q1-Q4 2000 (in billions and as a quarter-to-quarter percent change) | 35 |
| US eAdvertising Expenditures, by Month, 2000 (in millions) | 36 |
| US Advertisers Coming Online for the First Time, 2000 | 37 |
| US Advertising Spending in Selected Media, 2000 vs. 1Q01 (in millions) | 40 |
| First Quarter Ad Spending by Top US Advertisers, 2000 vs 2001 | 41 |
| US Advertising Expenditure Forecast, 2001 vs 2000 (in billions) | 41 |
| Revised 2001 Ad Spending Forecast (in billions); percent Changesfrom 2000 | 42 |
| Revised US 2001 Ad Spending Forecast by Medium (in billions); percent Changes from 2000 | 42 |
| Growth of US Advertising and eAdvertising Expenditures, 2001 | 42 |
| US Advertising Expenditures, by Media, 1998-2006 (in billions) | 43 |
| US eAdvertising Expenditures, 1997-2005 (in billions and as a percent of total expenditures) | 43 |
| US eAdvertising Expenditures as a percent of Total Advertising Spending, 1998-2005 | 44 |
| US Traditional and eAdvertising Spending Forecast, 2001-2002 | 45 |
| Media Fragmentation, 1975-2005 | 47 |
| Daily Use of Advertising Media among US Consumers, 1998-2003(in minutes) | 47 |
| Annual Use of Advertising Media among US Consumers, 2000 & 2004(in hours) | 48 |
| US Broadcast TV Advertising Expenditures 1998-2006 (in billions) | 49 |
| Reasons Why US TV Viewers Stay Tuned, 2000 | 50 |
| Daily Use of Media by US Consumers Aged 12+, 2000 | 50 |
| Consumption of Media per Day by US Households with and withoutInternet Access, 2000 (in minutes) | 51 |
| Changes in Media Consumption Since Internet Users in the US Started Going Online, March-September 2000 (as a percent of users who have increased, decreased or not changed their consumption) | 52 |
| TV Viewing and Web Surfing per Week among US Internet Users, 2000(in hours) | 52 |
| US Radio Advertising Expenditures, 1998-2006 (in billions) | 53 |
| US Daily Newspaper Circulation, 1985 - 2000 (in millions) | 54 |
| Decade-to-Decade Change in Daily US Newspaper Circulation,1960-1990 | 54 |
| US Newspaper Advertising Expenditures, 1998-2006 (in billions) | 55 |
| US Newspaper Readership, By Age, 2001 | 55 |
| Magazine Advertising Revenues, January - May 2001 vs. January-May 2000 (in millions) | 56 |
| US Magazine Advertising Expenditures, 1998-2006 (in billions) | 57 |
| Breakdown of eAdvertising Expenditure in the US, Q4 1999 - Q4 2000(as a percent of total web spending) | 58 |
| Cost of Recruiting an Employee Online and Offline in the US, 2000 | 58 |
| US Online Recruiting Ad Spending, 1998-2005 (in millions) | 59 |
| US Yellow Pages Advertising Expenditures, 1999-2005 (in billions) | 59 |
| US Print and Internet Yellow Pages Expenditures, 1999, 2000 & 2005(in billions) | 60 |
| US eAdvertising Expenditures, by Marketing Objective, 2000 | 61 |
| US Advertising Expenditures, by Marketing Objective, 2000 | 61 |
| US Direct Marketing Expenditures, 1998-2001 & 2005 (in billions) | 62 |
| US Interactive Direct Marketing Expenditures 1999-2001 & 2005(in millions) | 62 |
| US Cable Operator Perceptions of ITV Services, 2001 | 63 |
| Projected Global Interactive TV Revenues, 2001-2005 (in millions) | 63 |
| US Interactive TV Revenues, 2000-2006 (in billions) | 63 |
| Comparative Estimates: US Households with Interactive TV, 2000-2004(in millions) | 64 |
| Global Interactive TV Households, 2000 & 2006 (in millions) | 65 |
| US Unit Sales of Personal Video Recorders, 1999 - 2005 (in millions) | 65 |
| US Enhanced Broadcast TV Expenditures, 1999 - 2004 (in millions) | 65 |
| US Web on TV Expenditures, 1999 - 2004 (in millions) | 66 |
| US Interactive TV Expenditures, 1999 - 2004 (in millions) | 66 |
| Comparative Estimates: US Interactive TV Expenditures, 2005(in millions) | 66 |
| Comparative Estimates: US Interactive TV Commerce (tCommerce)Revenues, 2000-2004 (in billions) | 67 |
| How US Media Executives View iTV Potential, 2000 | 67 |
| US Online Radio Listeners, by Age, 2001 | 69 |
| Internet Users Who Have Used Internet Audio or Radio in the US, 2001 | 69 |
| Number of Internet Host Computers Worldwide, 1993-2000 (in millionsand as a percent change over the previous year) | 72 |
| Number of Websites Worldwide, 1997- 2001 (in millions) | 73 |
| Comparative Estimates: US Ad-Supported Websites, 2000 | 73 |
| Webpages, 1997-2002 (in millions) | 74 |
| US eAdvertising Expenditures, by Site Publisher, Q1 1998 - Q4 2000 | 75 |
| US eAdvertising Expenditures, by Content Genre, Q1 1999 - Q4 2000 | 76 |
| Top 10 US Web Properties, by Audience Reach, June 2001 | 76 |
| Available US eAdvertising Inventory That Goes Unsold, 1998-2000 | 77 |
| Comparative Estimates: Available US eAdvertising Inventory That Goes Unsold, 2000-2001 | 77 |
| US eAdvertising Expenditures, by Industry Category, 1999-2000(as a percent of total expenditures) | 80 |
| US eAdvertising Expenditures, by Major Consumer Category, 1999-2000(as a percent of total expenditures) | 80 |
| US eAdvertising Expenditures, by Industry Segment, 1999 & 2000 | 81 |
| US eAdvertising Expenditures, by Industry Segment, 1999-2005 | 82 |
| Advertisers and Number of Impressions for the Three Major Portals,First Quarter 2001 | 82 |
| Ad Dollar Concentration among Top US eAdvertisers, 1999-2001 | 83 |
| US Parent Company Internet Advertisers, by Spending, 1999 & 2000(in millions) | 84 |
| US Brand Internet Advertisers, by Spending, 1999 & 2000 (in millions) | 85 |
| US Internet Companies, by eAdvertising Expenditures, 2000 (in millions) | 86 |
| Three Degrees of Marketing and the Cost of Each in the US, 2001 | 91 |
| US Average CPM Rates, 2001 | 92 |
| What Drives CPMs Up (and Down) | 92 |
| US CPM, Q1 2000 - Q2 2001 | 93 |
| US Average CPM, by Ad Format, 2001 | 94 |
| Average Full Banner CPM Rate Card Price in the US, by Genre, Q3 &Q4 2000 vs. Q1 & Q2 2001 | 95 |
| Comparative Estimates: US Internet Advertising Expenditures andImplied CPM, Q1-Q3 2000 | 97 |
| Comparative Estimates: US eAdvertising Expenditures, Q1-Q4 2000(in millions) | 98 |
| Advertising Cost-per-Thousand Rates (CPMs) in the US, by Media, 2000 | 98 |
| Comparison of US Media Effectiveness in Branding: TV, Magazines, Newspapers and Banners, 2000 | 99 |
| Banner Click-Through Rates in the US, May 1998-December 2000 | 100 |
| Banner Click-Through Rates in Selected Countries, 2001 | 101 |
| The Case for eAdvertising Banners | 102 |
| The Case against eAdvertising Banners | 102 |
| Why CTRs Continue to Decline, 2001 | 102 |
| US Mass Media, 1960 & 2004 | 103 |
| US Consumer Marketing Messages per Day, 1999-2005 | 103 |
| US Click-Through Rate, by eAdvertising Channel, 1999 & 2001 | 104 |
| Daily Share of Advertising Media among US Consumers, 2000 | 104 |
| Model Internet Advertising Campaign in the US, 2001 | 105 |
| eAdvertising Pricing Models Used in the US, as a percent of Total Expenditures,2000 | 106 |
| How Often US Internet Users Ignore Banner Ads, 2000 | 108 |
| Mean Increase of US Banner Advertising: Awareness, Purchase Intent,Recall and Interest, 2001 | 109 |
| Relative Brand Awareness Levels in the US, Based on Banner Exposures,2001 | 109 |
| Ad Space, Existing and Revised, 2001 | 110 |
| Top Online Advertisers Using New Skyscraper Size, May 2001 | 111 |
| Growth of Popularity of New Skyscraper Size in the US, 2001 | 112 |
| Top US Sites Hosting Skyscrapers, May 2001 | 113 |
| Skyscraper Rate Analysis, 2001 | 114 |
| The Pros and Cons of the IAB's New Bigger Banners, 2001 | 115 |
| US eAdvertising Expenditures, by Type of Advertising, 1999-2000 | 116 |
| US Consumer Attitudes Towards Online Ads: Pop-Ups Versus Banners,2001 | 117 |
| eAdvertising Pricing Models Used in the US, 2000 (as a percent of totalexpenditures) | 119 |
| Rich-Media eAdvertising Facts, 2001 | 120 |
| Consumer Demand for Online Rich Media, 2001-2005 | 121 |
| US Household Broadband Penetration, 2000-2004 | 121 |
| Streaming Media Usage in the US, 1999 & 2000 | 122 |
| Advertising Agencies in the US that Will Purchase Streaming Media,2001 | 123 |
| Worldwide Wireless Internet Users, 2000-2004 (in millions) | 124 |
| Global Mobile eAdvertising Spending, by Region, 2000 - 2005(in millions) | 124 |
| Global Wireless eAdvertising Expenditures in Selected Countries, 2000 &2005 (in millions) | 125 |
| Comparative Estimates: US Wireless eAdvertising Expenditures,2000-2005 (in millions) | 126 |
| Wireless Advertisement Response Rates in the US, 2000 | 128 |
| Wireless Advertisement Call- or Click-Thru Rate, 2000 | 129 |
| Consumer Attitudes toward Mobile Advertising, November 2000 | 129 |
| Cellphones Capable of Sending/Receiving SMS, 1999-2002 (in millions) | 130 |
| Number of Instant Messaging Users at Work in the US, August 2000 &January 2001 | 132 |
| Number of Instant Messaging Users at Home in the US, August 2000& January 2001 | 132 |
| Profile of the Most Active Instant Messaging User, February 2001 | 133 |
| US and Global Offline Ad Expenditures, 2000 (in billions) | 136 |
| US and Global Offline Advertising Expenditures, 1998-2005 (in billions) | 136 |
| US and Global Offline Ad Expenditures, 2005 (in billions) | 137 |
| eAdvertising Expenditures in Markets Outside the US, 1997-2003(in millions) | 137 |
| Comparative Estimates: Online and Offline Advertising Expendituresin Markets Outside the US, 1998-2005 (in billions) | 138 |
| US Portion of Worldwide eAdvertising Dollars, 1997-2003 | 138 |
| Comparative Estimates: Global eAdvertising Expenditures, 1998-2005(in billions) | 139 |
| Comparative Estimates: eAdvertising Expenditures in Canada,1998-2005 (in millions) | 139 |
| eAdvertising Expenditures in Europe, 1998-2003 (in millions) | 140 |
| Comparative Estimates: eAdvertising Expenditures in Europe, 2000(in billions) | 140 |
| Comparative Estimates: eAdvertising Expenditures in Europe, 2001(in billions) | 141 |
| Comparative Estimates: eAdvertising Expenditures in Europe, 2004(in billions) | 141 |
| Comparative Estimates: eAdvertising Expenditures in Europe, 1998-2005(in billions) | 142 |
| percentage of Online Advertising Spent on Banner Ads in Western Europe, 2001 & 2006 | 142 |
| eAdvertising Expenditure in the United Kingdom, 1998-2003(in millions) | 143 |
| eAdvertising Expenditures in the UK, 2000-2005 (in millions) | 143 |
| eAdvertising Expenditures in Germany, 2000-2005 (in millions) | 144 |
| eAdvertising Expenditures in France, 2000-2005 (in millions) | 144 |
| eAdvertising Expenditures in Scandinavia, 2000-2005 (in millions) | 145 |
| eAdvertising Expenditures in Italy, 2000-2005 (in millions) | 145 |
| eAdvertising Expenditures in Spain, 2000-2005 (in millions) | 146 |
| Ad Expenditures in Asia Pacific, 1998-2003 (in millions) | 146 |
| Comparative Estimates: eAdvertising Expenditures in Asia Pacific,1998-2005 (in millions) | 147 |
| eAdvertising Expenditures in Japan, 2000-2005 (in millions) | 148 |
| Japanese Advertising Expenditures, 1998-2000 (in billions) | 148 |
| eAdvertising Expenditures in Australia, 2000-2005 (in millions) | 149 |
| Comparative eAdvertising Expenditures in China, 2000-2005(in millions) | 150 |
| eAdvertising Expenditures in Hong Kong, 2000-2005 (in millions) | 151 |
| eAdvertising Expenditures in Taiwan, 2000-2005 (in millions) | 151 |
| eAdvertising Expenditures in South Korea, 2000-2005 (in millions) | 152 |
| eAdvertising Expenditures in Latin America, 1998-2003 (in millions) | 152 |
| Comparative Estimates: eAdvertising Expenditures in Latin America,1998-2005 (in millions) | 153 |
| Online Advertising Spending in Latin America, 2000-2005 (in millions) | 153 |
Text © 2001 eMarketer
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© 2001 www.the-list.co.uk Ariadne
Last updated by Paul Tucker 18th August 2001