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Up and Coming Online Ads: Keyword Searches, Rich Media and Classifieds
December 2, 2002

A recent report released by eMarketer reveals that alternatives like keyword searches, classifieds and rich media are becoming increasingly popular means of online marketing, although banner ads are still slightly a head of competition.

Considering the popularity of online searching, the growing use of search sites for marketing is almost a no-brainer. Advertisers find that keyword searches are an effective way to position their brands and products.

Top 5 Activities of Americans Online, 2001
E-Mail 84.0%
Product & information search 67.3%
News, weather & sports 61.8%
Playing games 42.1%
Product & services purchases 39.1%
Source: US Department of Commerce, February 2002
According to DoubleClick’s Spring 2002 Marketing Spending Index, search engine optimization is nearly tied with banner ads as the most used online ad vehicle, cited by 67% and 68% of respondents, respectively, with keyword searches not far behind at 57%.

Online Ad Vehicles Used by US Marketers, 2002
Banners 68%
Search engine optimization 67%
Keyword search 57%
Sponsorships 43%
Rich media 40%
Refferals & affiliate programs 34%
Sweepstakes 25%
Interstitials, superstitials, pop-ups, pop-unders 23%
Classifieds 21%
Source: DoubleClick, June 2002
Of the three online ad vehicles that expanded in 2001, more dollars were put into classified advertising than into either paid search or rich media. Jupiter Research’s 2001 estimate for online classifieds is around US $1.06 billion and it is expected to pass US $2 billion by 2006.

Rich media tends to make online ads more effective. DoubleClick’s June 2002 release of its Ad Serving Trend Report revealed significant variations between click-through rates of rich media ads, at 2.4%, and conventional online ads, six times less at 0.4%. These results were based on an average of 400 million rich media ads DoubleClick serves daily, out of 2 billion total.

Online marketers will show more interest to rich media ads as the adoption of broadband Internet access increases. According to projections from Jupiter Media Metrix, 41% of online households in U.S will have some form of broadband Internet access by 2006. Nielsen//NetRatings has found that about 29% of all U.S Internet users last October (around 30 million people) had broadband Internet access in their homes.

According to data from Internet Advertising Bureau (IAB), Internet advertising revenues in the United States totaled US $1.7 billion for 2001/Q4 and US $7.2 billion for the year of 2001. Revenues declined 7.5% from 2001/Q3 and 23.4% from 2000/Q4.

Recent data from IAB reveals that Internet advertising revenues kept on decreasing during Q1 and Q2 in 2002 too.

Internet advertising revenues in the United States totaled $2.98 billion for the first six months of 2002, with Q1 accounting for $1.52 billion and Q2 totaling $1.46 billion. Internet advertising revenues for the first six months of 2002 declined 21% from the same period in 2001.




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