IQ News: IAS Stats Show

Ad Spending Up
Web advertising spending exceeded $1 billion in 1998, according to InterMedia Advertising Solutions’ InterWatch report. While that number is up from the company’s finding last year, the number is dramatically less than the Internet Advertising Bureau’s year-end tally of $1.92 billion.
Part of the discrepancy is likely due to the differing ways in which the two companies track Internet ad spending. The IAB compiles its numbers by conducting an anonymous survey of ad revenue from a large roster of sites, in a process that is overseen by Price Waterhouse Coopers. InterMedia, on the other hand, largely relies on rate cards to determine how much advertisers spend online.
The IAS report, which tracks online media spending in more than 400 industries, also found the Internet is comprising more of overall ad budgets.
Computers and software continued to be the top spending category at $461.8 million, though its share of total advertising on the Web dropped from 50.5 percent in 1997 to 44.7 percent this year. Spending overall was up 89.8 percent.
Categories with the largest growth: medicines, up 386.5 percent; government and organizations, up 328.7 percent; retail, up 235.6 percent; direct response companies, up 214.5 percent; public transportation, hotels and resorts, up 135 percent; and financial sites, up 128.5 percent.
Microsoft remained the leading spender overall at $34.9 million, up 9.4 percent, followed by IBM at $28.5 million, up 58.6 percent. Compaq leapt from 22nd to third, with a 169.8 percent increase to $16.2 million.
General Motors went from ninth to fourth, up 84.8 percent to $12.7 million. Excite slipped from third to fifth by posting a meager 1.5 percent increase.
Non-technology advertisers increased online advertising, with Barnes & Noble up 280.2 percent to $7.6 million, catapulting it from 42nd to ninth.
Datek Securities jumped from 30th to 10th, with spending up 201.2 percent to $7.6 million.
IAS says the Net represents 1.29 percent of overall ad budgets, up from .74 percent in 1997.
IAS is owned by Adweek Magazines parent VNU.-Adrienne Mand

The Web by the Ad Numbers

1998 1997
Internet Advertising Bureau $1.92 billion $906.5 million
InterMedia Advertising Solutions $1.03 billion $544.8 million