Commentary

Just an Online Minute... IAB Q3 Numbers

  • by December 21, 2000
As suspected, Internet ad spending softened in the last three months, marking the first time Web ad sales fell quarter to quarter, according to the Q3 numbers released yesterday by the Internet Advertising Bureau and PricewaterhouseCoopers.

Third quarter 2000 revenues grew $1,986 million (63.2%) over the same period in 1999, and showed a decline of $138 million (6.5%) when compared to the second quarter of 2000. Year-to- date online advertising revenues for 2000 now stand at $6.1 billion with a continuing run rate of between $8 and $9 billion for the year.

The ad banner also lost some popularity this quarter. Spending on banners went from about 50% in the second quarter to 46% in the third. The rest were sponsorships (28%), classifieds (9%), referrals (6%), interstitials (4%), email (2%), rich media (2%), keyword searches (2%), and other (2%).

Consumer-related advertising led spending in the third quarter, followed by computing and financial services. Retailers and automakers made up the bulk of consumer-related advertising.

So what does this mean? Despite all the gloom, the medium is by no means in trouble. We do still have to get through the slow ad months of January and February and should probably expect even more of a slowdown before a pickup, but don't panic yet.

IAB chairman Rich LeFurgy said traditional advertisers are increasingly filling in the holes that dot-coms created. "There is no doubt that traditional advertisers are increasing their online spending, as the $6 billion year-to- date attests," he said.

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