TNS Media Intelligence
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Matt Biscuiti
Golin/Harris International
(212) 373-6044
mbiscuiti@golinharris.com
News
 
February 5, 2001
 
Internet Ad Spending Continues Along Strong Growth Track
General Motors Lead Internet Ad Spenders
 
Despite continuing concerns of an overall economic slowdown, advertisers, with great enthusiasm and growing budgets, continue to embrace the Internet as a communications channel. The medium enjoyed a tremendous year-over-year increase in total advertising revenues - from $1.9 billion in 1999 to $2.9 billion in 2000, 52.6% increase. The total, as a percent of all ad spending through the first three quarters of 1999 to the same time period of 2000 rose from 1.75% to 3.04%.

This full-year information was compiled and released by CMR's Internet division, CMRi, as monitored through its Internet advertising expenditure application, AdNetTrackUS.

Leading all parent companies, General Motors ranked first in Internet advertising for the full year 2000 by spending $47.9 million. Microsoft ranked second, spending $25.5 million. Barnes & Noble Store, spending $15.9 million and Amazon.com, spending $15 million ranked first and second, respectively, atop the brand list.

Among categories, the Media & Advertising sector, which includes Internet communities, content providers, portals and search engines topped the list spending $542.2 million - an increase of 83.4% over 1999. And driving the e-commerce aspect of the web, the Retail sector spent $510.9 million in Internet advertising in 2000 - an increase of 73.6% over 1999.

"Internet advertising has been experiencing a steady growth," said David Peeler, President and CEO of CMR. "While most industry sources feel Internet spending is coming to a plateau, our research suggests that spending is still strong and will gradually increase."

Online and Offline Competitive Information
CMR continues to be the leading provider of competitive advertising and marketing information. Aside from this release of full-year 2000 information, CMRi, CMR's Internet division, last week announced the addition of multi-media reporting capabilities to its Internet monitoring application, AdNetTrackUS, making it the first expenditure information tracking service to provide both offline and online analyses.

The following is a look at topline Internet advertising information for full-year 2000:

Top Parent Company Internet Advertisers

Parent Company 2000 Web Ad $ 1999 Ad $ % Change
General Motors $47,970,252 $24,415,014 96.50%
Microsoft $25,543,844 $37,043,153 -31.00%
BankOne $25,244,750 $25,928,051 -2.60%
IBM $24,280,579 $31,917,595 -23.90%
AT&T $18,494,874 $13,488,819 37.10%


Top Brand Internet Advertisers

Brand 2000 Web Ad $ 1999 Ad $ % Change
Barnes & Noble Store + Online $15,903,892 $10,210,771 55.80%
Amazon.com Store + Online $15,042,511 $12,063,569 24.70%
AmeriTrade Brokerage + Online $14,325,577 $4,681,271 206.00%
WebMD Info Service + Online $14,139,577 $2,581,599 447.70%
Casino on Net + Online $13,189,177 $2,275,951 479.50%


Top Web Site By Revenue

Web Site 2000 Web Ad $ 1999 Ad $ % Change
Yahoo $442,336,726 $276,199,351 60.20%
Excite Network - Excite.com $249,248,846 $162,073,525 53.80%
Lycos $190,261,291 $114,003,750 75.80%
CNET $167,309,781 $100,671,750 66.20%
Netscape $134,623,234 $82,661,915 62.90%


Top Internet Spending by Sector

Sector 2000 Web Ad $ 1999 Ad $ % Change
Media & Advertising $542,155,702 $295,630,950 83.40%
Retail $510,853,232 $294,353,349 73.60%
Computers & Software $445,739,930 $344,307,084 29.50%
Financial $294,130,173 $212,276,467 38.60%
Local Service/Amusement $261,269,500 $156,748,116 66.70%

TNS Media Intelligence/CMR, offers strategic advertising intelligence to advertising agencies, advertisers, broadcasters and publishers. The company's tracking technologies collect occurrence and expenditure data, as well as the creative executions of over 900,000 brands across 15 media. CMR is headquartered in New York City and maintains sales locations in major markets throughout the United States. For further information, visit http://www.cmr.com.

Through its international network of more than 150 offices in over 40 countries, Taylor Nelson Sofres provides market information services in over 80 countries to national and multi-national organizations. It is ranked as the fourth largest market information group in the world. For further information, visit http://www.tnsofres.com.