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I/Pro survey finds executives still unsure about Internet advertising

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Woburn, Mass.—A new study by Internet Profiles Corp. finds that U.S. advertisers are still not convinced about the effectiveness of online advertising.

Web analytics firm I/PRO, which is owned by TopicalNet Inc., surveyed 145 executives who buy online and offline advertising, representing more than $12 billion in billings.

The survey found that 39% of advertisers believe the Internet is "moderately" effective in reaching their target audience, and 31% think it is "somewhat" effective. Only 21% said they believe the Internet is "very" effective in reaching their target audience.

Among those advertisers who do not advertise on the Internet, 36% said the medium lacks reliable performance measurement, and 28% cited budget constraints.

Among those advertisers who do advertise on the Internet, 72% said the greatest area for improvement is measurement standards, and 63% said more accurate targeting.

—Kate Maddox

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