First-quarter Net ad $ neared $2 bil

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U.S. Internet ad spending reached $1.95 billion in the first quarter, the Internet Advertising Bureau said in a report released Aug. 8. That was up 182% over last year's first quarter and 9.9% ahead of the strong fourth-quarter results. The IAB said the consumer-related category accounted for 31% of online spending, followed by financial services (15%), computing (15%), new-media companies (12%) and business services (10%). Banner ads contributed 52% of revenue, and sponsorships accounted for 27%, according to the report, compiled for the IAB by PricewaterhouseCoopers. Then came classifieds (4%); interstitials, e-mail ads and referrals (3% each); rich media (2%); keyword searches (1%); and "other" (5%) accounted for the rest. This is the first time the IAB broke out classifieds, referrals, rich media and keywords. The first-quarter results show the Internet ad market's strength before Net and other tech stocks came crashing down in the spring. In a statement, IAB Chairman Rich LeFurgy said "the market correction and subsequent dot-com closures likely had some impact in slowing growth in the second quarter," but added this was offset by growth in online budgets of traditional marketers. "Time will tell what effect, if any, recent developments will have on the growth of online advertising," he said.

Copyright August 2000, Crain Communications Inc.

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