• by Ken Liebeskind , October 15, 2001

The Association of National Advertisers Internet Advertising survey, released today, shows some promise with the number of companies advertising online and the amount they spend on the rise.

The study found that 79% of respondents advertise online (up 12% from last year) and spend an average of $2.4 million (up 24%). Online advertising accounted for 2.9% of total advertising, the same as last year, which suggests the increases are due to the fact that all advertising grew in 2000.

Only 41% of respondents predict increased spending this year, a marked decrease from the level of optimism expressed last year.

“We see increased emphasis on brand building,” said ANA senior vice president Barbara Bacci Mirque. “The biggest concerns among advertisers are how to measure Web site performance, audiences for Internet advertising and budget constraints.”

The most popular type of online advertising continues to be banners, followed by search engines, sponsorships and email. The use of email grew by 7%. Large size formats like Skyscrapers are also being used.

The CPM cost of online advertising has dropped considerably, to $11, half of last year’s cost.

Production costs rose 12%.

Fixed fees and hybrid deals that combine fixed fees and commissions are the most popular interactive agency compensation formats.