Direct Marketing, Mail Order, and E-commerce News from the National Mail Order Association

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NIELSEN//NETRATINGS REPORTS JUNE 2005 ONLINE ADVERTISING SPENDING:

Half of Estimated Online Advertising Spending Generated by Financial Services,

Web Media and Retail Goods

 

Nielsen//NetRatings, a global leader in Internet media and market research, reported June 2005
estimated online advertising revenue and spending from its AdRelevance service. General
community Web sites captured the fastest growing sector in estimated online advertising revenue,
followed by the categories of health and fitness, business, men's general interest, and shopping
and auctions. 

 

General community Web sites, led by MySpace, made the largest year-over-year

leap to $33 million with a 214 percent growth (see Table 1). Health and fitness

grew 80 percent in estimated revenue to more than $4.5 million, and business

Web sites took in $12.6 million, rising 46 percent as compared to last year.

Estimated spending reflects CPM-based online advertising only, and excludes search-based

advertising, paid fee services and other online promotions.

 

“General community sites tend to have a higher level of engagement or interactivity

with their users, making the sites very attractive to advertisers,” said Gerry

Davidson, senior media analyst, Nielsen//NetRatings.

 

Table 1. Top Five Genre with Largest Growth in Estimated Revenue, June 2005

+--------------------+---------------+---------------+-------------------+

| Category/Genre     |  Impressions  |   Estimated   |  Y-O-Y Growth of  |

|                    |     (000)     |    Revenue    | Estimated Revenue |

+--------------------+---------------+---------------+-------------------+

| General Community  |  11,705,535   |  $33,516,500  |       214%        |

| Health & Fitness   |    592,000    |  $4,508,400   |        80%        |

| Business           |    873,090    |  $12,557,500  |        46%        |

| Mens Interests     |    287,844    |  $1,611,300   |        45%        |

| Shopping & Auction |   3,314,973   |  $18,412,900  |        42%        |

+--------------------+---------------+---------------+-------------------+

Source: Nielsen//NetRatings AdRelevance, July 2005

 

Note: Estimated revenue reflects CPM-based advertising only, and excludes search-based

advertising, paid fee services, performance-based campaigns, sponsorships, barters,

partnership advertising, advertorials, promotions, email and direct response.

 

Top Online Advertising Categories

The top three categories-financial services Web sites, Web media sites and retail

goods and services sites-spent nearly $228 million in online advertising, collectively,

making up half of the estimated $456 million spent during June 2005.

 

The category of financial services, led by LowerMyBills.com, spent an estimated

$80 million on online advertising during June 2005, growing 16 percent year-over-year

(see Table 2). Web Media, propelled by Monster Worldwide, Inc., spent nearly

$75 million dollars, rising 15 percent as compared to last year. Retail goods

and services spent $73 million dollars, jumping 77 percent. United Online spent

the most in this category.

 

“Our MegaView Financial data shows that 53 percent of the active Internet universe,

or 74 million people in the U.S., are currently conducting financial activity

online,” said Davidson. “As a result, financial services companies have remained

very aggressive in spending the most advertising dollars online as they seek

new online customers.” 

 

“Online retailers have boosted their online advertising spending by a significant

77 percent, which is impressive to note because they are also one of the top

spenders,” continued Davidson.

 

Telecommunications and travel rounded out the rankings with $43 million and $33

million, rising 38 percent and 26 percent, respectively. Impressions for the

top five categories also secured double-digit growth year-over-year. 

 

Table 2. Top Industries in Estimated Spending, June 2005

+--------------------+--------------+---------------+--------------------+

| Industry           | Impressions  |   Estimated   |  Y-O-Y Growth of   |

|                    |    (000)     |   Spending    | Estimated Spending |

+--------------------+--------------+---------------+--------------------+

| Financial Services |  17,324,353  |  $80,256,900  |        16%         |

| Web Media          |  18,647,642  |  $74,743,300  |        15%         |

| Retail Goods &     |  15,650,888  |  $72,795,200  |        77%         |

| Services           |              |               |                    |

| Telecommunications |  10,198,279  |  $43,029,700  |        38%         |

| Travel             |  5,495,912   |  $32,985,400  |        26%         |

+--------------------+--------------+---------------+--------------------+

Source: Nielsen//NetRatings AdRelevance, July 2005

 

Note: Estimated spending reflects CPM-based advertising only, and excludes search-based
advertising, paid fee services, performance-based campaigns, sponsorships, barters,

partnership advertising, advertorials, promotions, email and direct response.

 

About Nielsen//NetRatings

NetRatings, Inc. (Nasdaq: NTRT), a global leader in Internet media and market

research, provides the Nielsen//NetRatings services, which set the global standard

for Internet audience measurement and analysis, and is the industry's premier

source for online media and market intelligence. Covering 70 percent of the world's

Internet usage, the Nielsen//NetRatings services offer syndicated Internet and

digital media research reports and custom-tailored data to help companies gain

valuable insight into their business.

For more information, please visit www.nielsen-netratings.com

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