• by May 18, 2001

A new report by Jupiter Media Metrix concludes that consumer package goods companies are more heavily targeting sites that appeal to specific demographic segments. Mike May, Jupiter senior analyst, says "… the costs of doing business with these smaller affinity sites are typically lower than they are with portals. Small sites are more likely to sign the shorter term deals, while portals try to hold out for deals stretching six to twelve months."

The AdRelevance data released at the AdTech conference in Los Angeles shows that these CPG firms purchased 55 % of their online ad impressions on niche Web sites during the first quarter of 2001, compared with 44 % during the third quarter of 2000. Jupiter analysts say that CPG companies are favoring sites that feature content that is a more obvious fit with their products.

Key findings from the new AdRelevance AdDemographics data, include:

- Alcohol ads were viewed by males 77 % of the time during the first quarter of 2001 with ad buys on sports and automotive sites that are heavily trafficked by men.

- Cosmetic advertisers achieved a 57 % female demographic by increasing their ad impressions on fashion, personal expression, and children and family sites.

- According to the data, CPG firms have doubled their online ad impressions since the third quarter of 2000 on portals. The 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.

- Retailers consistently purchase almost 50 % of their impressions on portals and few on niche sites, the report says, because the volume of orders they generate makes it easier for them to forgive the low return on investment (ROI) rates.

Go to jup.com for more information.