• by May 4, 2001

Jupiter Media Metrix says consumer packaged goods (CPG) firms are increasing their online advertising presence on niche sites as they attempt to target consumers more effectively. According to AdRelevance data released at the @d:Tech conference in Los Angeles, CPG firms purchased 55% of their online ad impressions on niche sites during the first quarter of 2001, compared to 44% during the third quarter of 2000. Jupiter analysts say the data indicate that CPG companies are still experimenting with online advertising and favoring sites that feature content that is a more obvious fit with their products.

"Online advertisers have long been looking for better ways to target consumers. The latest AdRelevance AdDemographics data show that CPG companies have been more heavily targeting sites that appeal to specific demographic segments," said Mike May, Jupiter senior analyst. "

Additionally, the costs of doing business with these smaller affinity sites are typically lower than the portals, and because most CPGs are investing to learn, they're avoiding larger media buys. Small sites are more likely to sign the shorter term deals that CPGs are looking for while portals try to hold out for deals stretching six to twelve months."

Key findings from the new AdRelevance AdDemographics data, the first Jupiter Media Metrix online advertising tracking product to combine Media Metrix audience measurement and AdRelevance data in the front-end, include:

* According to the AdDemographics data, alcohol ads were viewed by males 77% of the time during the first quarter of 2001 as alcohol advertisers increased their ad buys on sports and automotive sites that are heavily trafficked by men. Similarly, cosmetic advertisers achieved a 57% female demographic by increasing their ad impressions on fashion, personal expression, and children and family sites. Jupiter analysts warn, however, that results gleaned from small sites may not yield the learning CPGs seek - because campaigns that perform well on small sites don't always drive the same results when shifted to larger sites.

* While CPG advertisers have focused a higher percentage of their online ads on niche Web sites, portals have not suffered. According to the data, CPG firms have doubled their online ad impressions since the third quarter of 2000 and have significantly increased the number of impressions they purchase on portal sites. Jupiter analysts say that although CPGs have been successful in targeting specific audiences on niche sites, portal sites still offer the attractive mix of an extensive and diverse user base with audience segmentation among subsites. Jupiter analysts assert that CPGs should not neglect experimenting on portals because they offer more of an opportunity to scale campaigns due to their high level of page views.

* CPG companies are advertising on niche Web sites more than retailers. While CPG firms have decreased their share of online ads on Web portals since the third quarter in favor of niche Web sites, retail companies consistently purchase almost 50% of their impressions on portals and few on niche sites. According to Jupiter analysts, retailers rely on portals because the volume of orders they generate makes it easier for them to forgive the low return on investment (ROI) rates.