Microsoft is top Web spender

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Bob Herbold made good on his prediction: Microsoft Corp. was the biggest advertiser on the World Wide Web last year, spending $13 million, according to information released Wednesday by Jupiter Communications. Microsoft outspent the No. 2 advertiser, AT&T, by nearly a two-to-one margin. AT&T spent $7.3 million on the Web.

Total online ad spending reached $301 million last year: $260 million on the Web, $41 million on online services and "push" technologies like PointCast and $18 million on online Yellow Pages and classified ads. Web spending in the fourth quarter reached $102.4 million, up 51% over the third quarter's $67.7 million.

The top Web publisher was Netscape, generating $27.7 million in revenues. Yahoo! edged out Infoseek for the No. 2 spot, with $20.6 million in revenues compared to Infoseek's $18.1 million.

Only four of the top spenders were not among the top publishers: Microsoft Corp., AT&T, IBM Corp. and Nynex. The top 10 advertisers accounted for just over one-quarter of all Web spending, Jupiter found.

Jupiter estimates Web revenue and spending by analyzing rate cards. Figures don't take into account discount rates and barter. Jupiter estimates its reported figures are about 15% higher than actual figures reported by public Web companies.

How Web advertising has grown:
First Quarter$25.3
Second Quarter$46.3
Third Quarter$67.7
Fourth Quarter102.4
Note: Figures for 1996. Dollars in millions.
Does not include $18 million in classifieds
and yellow pages.
Source: Jupiter Communications.

Top Web publishers
1996
Rank
PublisherRevenue
1Netscape$27.7
2Yahoo!$20.6
3Infoseek$18.1
4Lycos$12.8
5Excite$12.2
6CNET$11.4
7ZD Net$10.2
8WebCrawler$7.3
9ESPNET Sports Zone$6.5
10Pathfinder$5.8
Note: Figures for 1996. Dollars in millions.
Source: Jupiter Communications.

Top Web advertisers
1996
Rank
AdvertiserSpending
1Microsoft$13.0
2AT&T$7.3
3Excite$6.9
4IBM$5.9
5Netscape$5.7
6Infoseek$5.1
7NYNEX$4.0
8Yahoo!$3.9
9Lycos$3.9
10CNET$2.7
Note: Figures for 1996. Dollars in millions.
Source: Jupiter Communications.

Copyright March 1997, Crain Communications Inc.

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