TNS Media Intelligence
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Matt Biscuiti
Golin/Harris International
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January 1, 2004
 
Continued Economic Downturn Slows Online Ad Spending: Down 17.1 Percent for the First Three Quarters of 2001
Ebay Inc. Takes Online Spending Lead from General Motors Corp.
 
Online ad spending dropped 17.1 percent for the first three quarters of 2001 compared to the same time period in 20001, according to the latest figures from CMRi, the Internet division of CMR, a leading provider of strategic advertising and marketing communications information.

CMRi estimates that Internet ad spending for the first three quarters of 2001 totaled $2.1 billion. Auction site parent company Ebay Inc. led Internet spending with $35.7 million for the first three quarters of 2001. Recurring online spending leader General Motors Corp. fell slightly behind Ebay Inc. at $35.5 million.

"As many look to the holiday season to alleviate the slowdown in online activity, we may see a bright spot in spending post-holiday, especially as more and more traditional companies move their ad campaigns to the Internet," said David Peeler, president and CEO of CMR. "In order to overcome some of the cuts in ad budgets that most (online) advertisers felt this year, companies are carefully utilizing online targeting capabilities to effectively market brands to appropriate end users. As companies take advantage of this tactic, the advertising industry is hopeful of seeing a steady increase of dollars budgeted for Internet ad campaigns in the new year."

Top Online Revenue by Web Site First Three Quarters 2001

Site Revenue
Yahoo $284,363,625
AOL.com $252,630,839
Excite $118,195,570
Lycos $86,341,416
Netscape $79,103,793
AltaVista $66,606,230
WebCrawler $51,006,160
ESPN.com $34,755,251
MSN $27,284,477
Weather.com $26,245,144
Source: CMRi's AdNetTrackUS

Top Online Ad Spending by Company First Three Quarters 2001

Company Spending
Ebay Inc $35,731,219
General Motors Corp $35,520,684
Providian Corp $23,581,190
Amazon.com Inc $22,884,132
Classmates Online Inc $21,831,884
Barnes & Noble Inc $21,595,465
AOL Time Warner Inc $19,242,581
JP Morgan Chase & Co $18,011,060
Bank One Corp $17,295,526
Vivendi Universal SA $15,963,171
Source: CMRi's AdNetTrackUS

Top Online Ad Spending by Industry Class First Three Quarters 2001

Industry Spending
Retail $432,553,803
Media & Advertising $363,323,644
Financial $260,633,494
Local Services & Amusements $200,131,636
Computers & Software $194,720,418
Public Transportation, Hotels & Resorts $103,007,919
Automotive, Automotive Access & Equip $89,671,013
Government & Organizations $62,844,864
Telecommunications $61,724,212
Insurance & Real Estate $56,221,210
Source: CMRi's AdNetTrackUS

Web site revenues continued to be dominated by Yahoo in the first three quarters of 2001 totaling $284.4 million. However, compared to the same timeframe in 2000, Yahoo revenues decreased 8.6 percent from $311.2 million. Also topping the Web site revenue list were AOL.com and Excite, which garnered $252.6 million and $118.2 million respectively.

About CMR
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 network of offices in more than 50 countries, Taylor Nelson Sofres provides marketing information services to leading national and multi-national companies operating in over 80 countries. It is ranked as the fourth largest marketing information group in the world. Further information on Taylor Nelson Sofres is available from the corporate Web site: http://www.tnsofres.com.

Editor's Note:
First Three Quarters 2001 Advertising Spending By Industry Category available upon request.

1 Figures are based on CMRi's AdNetTrackUS Internet advertising expenditure database.