Web ad revenues climb in 3rd quarter

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Jupiter Communications reported that Web advertisers spent an estimated $66 million in the third quarter, up 43% from the previous quarter. Total Web ad revenue for the first nine months was $138 million.

Jupiter said online advertising, including ads placed on PointCast and America Online, will still total more than $300 million for 1996, but it did not make a prediction for Web-only advertising except to say that percentage growth for the fourth quarter should be higher than for the third quarter. Assuming the same 43% growth, Web advertising could amount to $230 million for the full year.

Jupiter said the top Web publisher was again Netscape, which generated $8.2 million in revenue in the quarter, mainly from fees paid to it by the search engines for placement on the Netscape home page. After Netscape were, in order, Yahoo, InfoSeek, Excite, Lycos, CNET, WebCrawler, ZD Net, Magellan and ESPNET SportsZone.

The top Web advertiser for the quarter was Microsoft Corp., at $2.9 million. After that were AT&T Corp., Netscape, Excite, InfoSeek, IBM Corp., McKinley Group, Lycos, Yahoo and Nynex.

Among non-Web-related companies, Toyota Motor Sales USA, Procter & Gamble Co., Ford Motor Co. and General Motors Corp.'s Saturn all ranked in the top 25. Only Toyota and P&G ranked in the top 25 in the first half.

Jupiter says its estimates are based on rate cards and don't reflect discounts. It says its calculations are about 15% higher than actual ad revenue figures reported by publicly held companies and revenues reported in off-the-record interviews with other non-public companies.

Copyright November 1996, Crain Communications Inc.

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