• by Jack Loechner , Staff Writer @mp_research, December 11, 2001

E-Advertising Short Term Future

The Interactive Advertising Bureau (IAB) reports that US online advertising generated $1.79 billion in revenue in Q3 2001, representing a 4.1% decline from the $1.87 billion generated in Q2. The IAB reports that online ad revenue for the first three quarters of 2001 totaled $5.55 billion, down 8.4% versus the same period in 2000.

US Online Ad Revenue By Industry (% of ad revenue)

  +---------------------+------+------+  |                     | Q2   | Q3   |  |                     | 2001 | 2001
|  +---------------------+------+------+  | Consumer            | 30%  | 29%  |  | Computing           | 18   | 19   |  | Business Services   | 8    | 10   |  | Financial Services  | 13   | 12   |  |
Media               | 10   | 14   |  +---------------------+------+------+  

Source: PriceWaterhouseCoopers, IABInteractive Advertising Bureau

Though the consumer-targeted industry's claim on total e-ad revenue declined from 30% to 29% between Q2 and Q3, it still maintains the largest share of the market over any other economic segment advertising online.

eMarketer believes US e-ad revenue will rise by 11% in 2002, returning them to the $8 billion level achieved in 2000. Merrill Lynch predicts that signs of improvement will emerge by mid-2002 and a survey among marketing executives by the Myers Group suggests it will likely revive by late-2002 or early-2003. The advertising market typically picks up six months after the overall economy begins to turn around.

Comparative Estimates US OnLine Ad Spending, 2001

  +---------------------------+----------+  | Firm                      |   $ in   |
|                           | Billions |  +---------------------------+----------+  | Myers Group               |   4.7    |  | Jupiter Research          |   5.7    |  | Forrester Research        |
6.0    |  | EMarketer                 |   7.3    |  | Veronis, Suhler & Assoc.  |   7.5    |  | Morgan Stanley            |   7.8    |  | Yankee Group              |   8.6    |
+---------------------------+----------+  

Source: eMarketer and various, November 2001

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