• by December 18, 2000

The Internet Advertising Bureau (IAB) and Myers Reports, Inc. today released the top-line findings of a recent study of online advertisers and the results reveal that the role of Internet advertising has undergone a weighty shift between its early stages and the present. The results show that the primary reason for advertising online has shifted away from sales generation to website traffic building and brand awareness. The study, conducted in September among 278 ad executives who've used the web as an ad medium in the past 12 months, shows that only 46% of respondents state that driving e- commerce activity is their primary reason to advertise on the Internet.

Jack Myers, chief economist and CEO of Myers Reports, Inc., said, "Last year's study provided a nearly-warning to online media companies, by suggesting that the medium was not providing advertisers with acceptable research, response rates or sales support."

"This year," he added, "in the face of a soft ad marketplace, we have actually increased our projections of online ad spending to 70% growth, based on research showing that online spending is moving more quickly into the ad mainstream than we had originally foreseen." "Current economic conditions are creating negative perceptions of online advertising," said Myers. "However, media buyers look at advertiser value, not shareholder value. Based on this research and other economic indicators, Myers Reports increased our online spending growth forecast for 2001 from 50% to 70%." A comprehensive analysis of the study results is underway and will be released in a special Myers Mediaenomics Report in the last week of January 2001.