• by Newswire Report , July 23, 2003

DoubleClick Inc. on Wednesday announced results of its Q2 2003 Ad Serving Trend Report, which reveals that rich media usage continues to grow quarter by quarter, while larger ads have surpassed the smaller options in popularity. The report also suggests that marketers, having mastered direct response on the Web, are now perfecting the art of online branding and creating more memorable ads that leave lasting impressions. This is evidenced by declining click-through rates -- the lowest in six quarters -- and higher view-through rates (assessed when a user takes some action on an ad within 30 days of viewing, but not clicking on it).

"Building on the success of online direct response, marketers are starting to really take advantage of the Web as a branding medium," said Doug Knopper, Vice President and General Manager, Online Advertising Solutions, DoubleClick. "As DoubleClick's latest report shows, click-throughs are being de-emphasized and we're seeing more memorable ads that will have a latent impact on the user. Rich media, which has shown massive growth, promises to play a central role in these branding strategies."

Rich Media and Larger Ad Formats Gaining

Rich media, defined as dynamic ads that fly across web pages, pop-ups, and any ad that includes Macromedia Flash creative technology, increased from 17.3% of all ads served in Q1 of 2002 to nearly 32% (31.7%) in Q2 of 2003. While on average, it has been increasing 10% per quarter, it increased 14% from Q1 2003. Flash accounts for the largest percentage of rich media served and is now nearly 14% of all ads served.

Rich media also continues to display stronger conversion rates than non- rich media (GIFs and JPEGs). Rich media generates higher rates of post- impression activity per impression (.76% vs. .55% for non-rich media) as well as post impression sales per impression (3.07% vs. 1.02% for non-rich media).

In terms of ad size, the standard banner (468 x 60 pixels) still accounts for a substantial portion of all ads served (42%), but it has been losing ground to other, larger sizes. Since Q2 2002, the standard banner declined in volume by 23% and the button is down 43%. Larger ad units, however, like large rectangles (both 300 x 250 and 336 x 280) increased 257% and 117%, respectively. Skyscrapers, which are now the 2nd most popular unit, accounting for 9% of total volume in Q2, grew 55% from Q2 2002 to Q2 2003.

Newer large units are performing well. The leaderboard, a wide unit (728 x 90) that often appears at the top of web pages, is now the fastest growing size at 562% growth from Q2 2002, and is now the fourth most common size served by DoubleClick. Half-page ads (550 x 480) had the second highest response rate at .90%.

Click-Throughs vs. View-Throughs Suggest Growing Use of Online Advertising for Branding

The report notes that click-through rates have declined to the lowest in six quarters, while view-through rates have continued to rise, surpassing click-throughs (.63% vs. .52%). View-throughs assess some action observed within 30 days of a consumer viewing an ad (post impression impact). These metrics are part of the larger picture of the effectiveness of online advertising: click-throughs assess immediate response, while view-throughs reflect the latent impact of that online ad.

Average click through rates for ads served by both advertisers and publishers declined 14% from Q1 to .61% in Q2 2003; the rates had remained constant in the previous five quarters at an average of .70%. The decline of click-throughs and the growth of post impression metrics like view-throughs could reflect growing use of online advertising for branding: more creative executions designed to have impact over time rather than solicit immediate response.

Online Advertising Volume Increases

DoubleClick Ad Serving volume has increased to its highest level since Q2 2002 and is currently at 149.8 billion ads delivered for the quarter. This is a 5% increase over Q42002 and a 10% increase over Q1 2003.