Dot-com marketing budgets soften in 1st quarter

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Leading e-commerce companies spent an average $29.8 million during the first three months of 2000 to build their online brands and drive traffic to their Web sites, according to the eCommerce Almanac. The median first quarter sales and marketing budget was $21 million, compared with $34 million for all of 1999 and $6 million in 1998. At the same time, the share of top-line revenue allocated to sales and marketing declined during the quarter by 36% from last year. The top five dot-com spenders are E-Trade, $177.5 million;, $140.1 million; Charles Schwab & Co., $100.9 million; Ameritrade, $54.8 million; and, $40.4 million. Offline advertising now accounts for a substantial share of sales and marketing expenditures, with TV used by 75% of e-marketing companies. America Online is the most common online marketing partner, with more than half the companies tracked by eCommerce Almanac ( having inked marketing deals with one or more AOL properties.

Copyright August 2000, Crain Communications Inc.

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