Banner rate discounts average 33%, study finds

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A study offers more evidence that banner rate cards barely rate. Media Metrix unit AdRelevance said site rate cards offer an average discount of 33% from the full price, based on volume and duration of the banner buy. The bar is so low--often around $3,000--that most advertisers qualify for the discounts, said Marc Ryan, director of media research, of the study being released Aug. 14. While some sites stick to published rates, Mr. Ryan said, many offer up to 30% additional negotiated discounts. So advertisers can buy banners at little more than one-third the published price. "Most people look at a rate card as a starting point," he said. In the study of more than 400 sites, AdRelevance found average published rates for 1,000 banner impressions in the first half were $30.52, down 8% from the second half of last year. Advertisers' average online spending in the period was $299,000, up 14%.

Copyright August 2000, Crain Communications Inc.

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