In a stunning twist that belies the power and growth of online advertising, a handful of marketers who pioneered Internet marketing are switching ad dollars back to traditional venues. One of them,
1-800-Flowers.com Inc., was the first merchant to join with AOL to sell and promote its service. Since then it has spent millions of dollars into reaching customers through the Internet. But its
latest campaign consists of billboards and posters promoting its Happy Hour bouquets of flower-filled margarita glasses. Another marketer, Netflix Inc., spent more than $110 million online last year,
according to Nielsen Net/Ratings' AdRevelance unit. But as online DVD rentals become more mainstream, the service is finding that offline ads pay off, too. It launched its first TV ad in 2004 and has
been rolling out more since. One reason for the trend is the rising cost of Web ads as more big companies begin to advertise online. "The big brands have stepped into this market in a big way, and we
can't afford to play that game," says Shmuel Gniwisch, chief executive of online jewelry retailer Ice.com Inc., which now spends roughly 20 percent of its advertising budget offline, up from nothing
two years ago.
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