Advertising Online: That Was Then, What Now?

EDITORS NOTE: This week’s tip is taken from the Emarketer.com article “Advertising Online: That Was Then, What Now?” article that was published on October 17, 2001.

The fifth annual 2001 Association of National Advertisers report finds that 79% of US companies advertised online in 2000 — up from slightly under 67% in 1999. Companies spent an average of $2.4 million each for e-advertising last year and 50% say that developing and improving brand loyalty was their primary goal overall for web marketing.

The ANA conducted two sets of surveys, among 93 member companies, between April and June 2001 covering online spending and activities in 2000. 92% of the companies surveyed say that banners and/or buttons were the most popular online advertising vehicle in 2000 — additionally about 67% utilized e-mail marketing initiatives.

Internet Advertising Formats Used By US Companies, 2000 (as a % of respondents)

Banners/buttons – 92%
Search engines/portals – 75%
Sponsorships – 70%
E-mail marketing – 67%

Source: Association of National Advertisers (ANA), October 2001

For an idea of the kind of companies the ANA surveyed, the study reports that 52% sold products and services online in 2000, but online sales accounted for only 2.4% of their total revenue.

Companies In The US Selling Or Planning To Sell Products Or Services Online, 2000 (as a % of respondents*)

Sell products/services online – 52%
Plan to sell online sometime in the future – 45%

Note: * n=136 ANA members
Source: Association of National Advertisers (ANA), October 2001

The ANA’s research covers activity in 2000, but reports have been published that focus on 2001′s internet marketing trends. The latest report from PwC and the IAB finds that the usage of banners declined from 51% of companies using them between Q1 and Q2 2000 to 36% between Q1 and Q2 2001. The usage of classifieds and slotting fees, however, grew substantially over the year.

Online Advertising Formats, Q1-Q2 2000 & Q1-Q2 2001

Banners Q1-Q2 2000 – 51%
Banners Q1-Q2 2001 – 36%

Sponsorships Q1-Q2 2000 – 27%
Sponsorships Q1-Q2 2001 – 28%

Classifieds Q1-Q2 2000 – 5%
Classifieds Q1-Q2 2001 – 15%

Slotting Fees Q1-Q2 2000 – 0%
Slotting Fees Q1-Q2 2001 – 8%

Interstitials Q1-Q2 2000 – 3%
Interstitials Q1-Q2 2001 – 3%

E-mail Q1-Q2 2000 – 3%
E-mail Q1-Q2 2001 – 3%

Referrals Q1-Q2 2000 – 3%
Referrals Q1-Q2 2001 – 2%

Key Word Search Q1-Q2 2000 – 1%
Key Word Search Q1-Q2 2001 – 3%

Rich Media Q1-Q2 2000 – 2%
Rich Media Q1-Q2 2001 – 2%

Other Q1-Q2 2000 – 5%
Other Q1-Q2 2001 – 0%

Given the current economic environment, don’t be surprised if online ad spending in 2001 either stayed the same as in 2000 or even decreased. Look for e-mail advertising to become more popular, especially among companies who’s budgets won’t support a full-scale branding campaign. For those established companies with marketing dollars to spend, it remains to be seen if the recent reports extolling the banner’s branding capabilities will lead them to increase their online advertising activity.

 back to top